Answer
$1300$ dollars worth of merchandise and we would spend $1210$ dollars in total.
Work Step by Step
Let $x$ be the original amount we should have spent on merchandise. Then our equation is: $300+0.7x=40+0.9x\\260=0.2x\\x=1300$
So we would have to buy $1300$ dollars worth of merchandise and we would spend $1210$ dollars in total.