tourist trap souvenir shop ordered the following items at a discount of 15/14/5: 29 cases of water listing…
tourist trap souvenir shop ordered the following items at a discount of 15/14/5: 29 cases of water listing for $19.24 per case and 12 cases of soft drinks listing for $10.72 per case. what is the total list price of this order? $ what is the net price of this order? $ what is the amount of the trade discount? $ question help: message instructor submit question
Answer
Explanation:
Step1: Calculate list - price of water
The list - price of water is the number of cases times the price per case. The number of water cases is 29 and the price per case is $19.24. So the list - price of water is $29\times19.24 = 557.96$.
Step2: Calculate list - price of soft drinks
The number of soft - drink cases is 12 and the price per case is $10.72. So the list - price of soft drinks is $12\times10.72=128.64$.
Step3: Calculate total list price
The total list price is the sum of the list - price of water and the list - price of soft drinks. So it is $557.96 + 128.64=686.6$.
Step4: Calculate the net - price factor
The discount series is 15/14/5. First, find the complement of each discount rate. The complements are $(1 - 0.15)=0.85$, $(1 - 0.14)=0.86$, and $(1 - 0.05)=0.95$. Then the net - price factor is $0.85\times0.86\times0.95=0.69055$.
Step5: Calculate net price
The net price is the total list price times the net - price factor. So it is $686.6\times0.69055\approx474.14$.
Step6: Calculate trade discount amount
The trade discount amount is the total list price minus the net price. So it is $686.6−474.14 = 212.46$.
Answer:
Total list price: $686.6 Net price: $474.14 Trade discount amount: $212.46