Asked by Kirtley Pemberton on Jun 14, 2024
Verified
Mavis Industries sells industrial fans that have a list price of $587.50. The trade discount that they offer to Don Ellis Construction is 37%. What is the net price?
A) $217
B) $370
C) $551
D) $625
E) $806
Trade Discount
A reduction in the listed price of goods or services, offered by sellers to buyers in the business-to-business market.
- Compute the net price by calculating the difference between the list price and trade discount.
Verified Answer
AT
Azozz TashkandiJun 19, 2024
Final Answer :
B
Explanation :
The net price is calculated by subtracting the discount from the list price. The discount is 37% of $587.50, which is $217.375. Subtracting this from the list price gives a net price of $370.125, which rounds to $370.
Learning Objectives
- Compute the net price by calculating the difference between the list price and trade discount.
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