a manufacturer offers a 25/20 chain discount if the invoice subtotal is above $1,000. if the list price is…
a manufacturer offers a 25/20 chain discount if the invoice subtotal is above $1,000. if the list price is $52 per item, what is the total price of the first invoice that activates the chain discount? $? round to the nearest cent.
Answer
Explanation:
Step1: Determine number of items for discount - eligibility
Since the chain - discount is activated when the invoice subtotal is above $1000 and the list price per item is $52, we find the number of items $n$ such that $52n>1000$. So, $n=\lceil\frac{1000}{52}\rceil=\lceil19.23\rceil = 20$.
Step2: Calculate the subtotal before discount
The subtotal before discount for 20 items is $52\times20 = 1040$.
Step3: Apply the first discount
The first discount is 25%. The price after the first discount $P_1$ is $P_1=(1 - 0.25)\times1040=0.75\times1040 = 780$.
Step4: Apply the second discount
The second discount is 20%. The price after the second discount $P_2$ is $P_2=(1 - 0.20)\times780=0.8\times780 = 624$.
Answer:
$624.00$