Bernie’s Bike Shop receives the following trade discounts: 35/25/15. Thevendor’s price list indicates that 35 percent off list price is for purchasingbikes in quantities of 100 or more, 25 percent off list price is for assemblingthe bikes for customers, and 15 percent is for sales promotion and localadvertising.a. If the manufacturer’s list price is $470, what should Bernie pay for eachbike if he orders 110 bikes at a time, assembles the bikes, and displays andadvertises them?b. What is Bernie’s single equivalent discount rate?c. How much will Bernie pay the manufacturer for each bike if he orders10 bikes at a time and takes advantage of the other discounts?
Bernie’s Bike Shop receives the following trade discounts: 35/25/15. Thevendor’s price list indicates that 35 percent off list price is for purchasingbikes in quantities of 100 or more, 25 percent off list price is for assemblingthe bikes for customers, and 15 percent is for sales promotion and localadvertising.a. If the manufacturer’s list price is $470, what should Bernie pay for eachbike if he orders 110 bikes at a time, assembles the bikes, and displays andadvertises them?b. What is Bernie’s single equivalent discount rate?c. How much will Bernie pay the manufacturer for each bike if he orders10 bikes at a time and takes advantage of the other discounts?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Bernie’s Bike Shop receives the following trade discounts: 35/25/15. The
vendor’s price list indicates that 35 percent off list price is for purchasing
bikes in quantities of 100 or more, 25 percent off list price is for assembling
the bikes for customers, and 15 percent is for sales promotion and local
advertising.
a. If the manufacturer’s list price is $470, what should Bernie pay for each
bike if he orders 110 bikes at a time, assembles the bikes, and displays and
advertises them?
b. What is Bernie’s single equivalent discount rate?
c. How much will Bernie pay the manufacturer for each bike if he orders
10 bikes at a time and takes advantage of the other discounts?
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