Asked by Nitin Channa on Jul 04, 2024
Verified
A trade discount series of 30%/15%/5% is offered on a product that has a list price of $8,900. What is the net price?
A) $4,450
B) $5,031
C) $6,555
D) $7,221
E) $7,925
Trade Discount
A reduction in the retail price offered by sellers to buyers in the trade as an incentive or reward for buying in bulk or meeting certain conditions.
List Price
The price quoted by a supplier of a product before any trade discounts.
Net Price
The price paid after the deduction of trade discounts.
- Determine the net price after multiple trade discounts.
Verified Answer
AN
Ashley NicoleJul 10, 2024
Final Answer :
B
Explanation :
The net price after a trade discount series of 30%/15%/5% on a product with a list price of $8,900 is calculated by applying each discount consecutively. First, a 30% discount reduces the price to $6,230 ($8,900 - 30% of $8,900). Then, a 15% discount on the new price brings it down to $5,295.50 ($6,230 - 15% of $6,230). Finally, a 5% discount further reduces it to $5,030.73 ($5,295.50 - 5% of $5,295.50), which rounds to $5,031.
Learning Objectives
- Determine the net price after multiple trade discounts.