Asked by Elise Weidman on May 01, 2024
Verified
Martin Auto Parts charges Sam's Service Centre $386 for a rebuilt transmission that has a list price of $925. What is the rate of trade discount?
A) 22.9%
B) 32.2%
C) 40.0%
D) 58.3%
E) 66.7%
Trade Discount
A reduction granted by a supplier on the list or catalog prices of goods or services, often based on the volume of transactions.
- Determine the trade discount percentage using list and net pricing information.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
D
Explanation :
The rate of trade discount is calculated by subtracting the sale price from the list price, then dividing by the list price, and finally multiplying by 100 to get a percentage. So, 925−386925×100=58.3%\frac{925 - 386}{925} \times 100 = 58.3\%925925−386×100=58.3% .
Learning Objectives
- Determine the trade discount percentage using list and net pricing information.