Asked by Daniel Carrera Chavarria on Jul 14, 2024
Verified
A manufacturer of snowmobiles sells through distributors in some regions of the country, through wholesalers in other regions, and directly to retailers in its home province. The manufacturer gives a 25% trade discount to retailers, an additional 10% discount to wholesalers, and a further 7.5% discount to distributors. What net price does the manufacturer receive from each buying level on a snowmobile listed at $9,800?
Trade Discount
A reduction in the list price of goods or services offered to buyers, typically in the business-to-business market.
Wholesalers
Businesses or individuals that sell goods in large quantities at lower prices, typically to retailers or professional buyers.
Distributors
Companies or individuals that buy products from manufacturers and sell them to retailers or directly to consumers.
- Calculate net price after trade discounts.
Verified Answer
SH
Shree' HolmanJul 20, 2024
Final Answer :
Retailers = $7,350.00; Wholesalers = $6,615.00; Distributors = $6,118.88
Learning Objectives
- Calculate net price after trade discounts.