a manufacturer offers a 30/10 chain discount if the invoice subtotal is above $1,000. if the list price is…

a manufacturer offers a 30/10 chain discount if the invoice subtotal is above $1,000. if the list price is $180 per item, what is the total price of the first invoice that activates the chain discount? $? round to the nearest cent.

a manufacturer offers a 30/10 chain discount if the invoice subtotal is above $1,000. if the list price is $180 per item, what is the total price of the first invoice that activates the chain discount? $? round to the nearest cent.

Answer

Explanation:

Step1: Calculate the number of items to reach the subtotal threshold

The invoice subtotal threshold for the chain - discount is $1000. The list price per item is $180. Let the number of items be $n$. We use the formula $n=\frac{1000}{180}\approx5.56$. Since we can't buy a fraction of an item, we need to buy $n = 6$ items.

Step2: Calculate the list - price subtotal

The list price per item is $180, and we have 6 items. So the list - price subtotal $L=180\times6 = 1080$.

Step3: Apply the first discount

The first discount is 30%. The price after the first discount $P_1$ is calculated as $P_1 = L\times(1 - 0.3)=1080\times0.7 = 756$.

Step4: Apply the second discount

The second discount is 10%. The price after the second discount $P_2$ is calculated as $P_2=P_1\times(1 - 0.1)=756\times0.9 = 680.4$.

Answer:

$680.40$