trade discount question

User Generated

fvzba

Business Finance

Description

A retailer purchases goods that have a list price of $7,500. The manufacturer allows a trade discount of 40-25-10 and a cash discount of 2/10, net 30. If the retailer takes both discounts, how much is paid to the vendor?

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Explanation & Answer

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7500 * 0.4*7500 = 4500

4500 - *.02*7500 = 4500 - 90 = 4410

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