Suppose a certain car audio manufacturer receives an order of a certain brand of satellite radios listing for $9,500 with trade discounts of 25/12/6. (a) What is the net price factor? (b) What is the single equivalent discount? (c) What is the amount (in dollars) of the trade discount? (d) What is the net price (in dollars) of the order?
Suppose a certain car audio manufacturer receives an order of a certain brand of satellite radios listing for $9,500 with trade discounts of 25/12/6. (a) What is the net price factor? (b) What is the single equivalent discount? (c) What is the amount (in dollars) of the trade discount? (d) What is the net price (in dollars) of the order?
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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Transcribed Image Text:Suppose a certain car audio manufacturer receives an order of a certain brand of satellite radios listing for $9,500 with trade discounts
of 25/12/6.
(a) What is the net price factor?
(b) What is the single equivalent discount?
(c) What is the amount (in dollars) of the trade discount?
$
(d) What is the net price (in dollars) of the order?
$

Transcribed Image Text:A photographer buys some merchandise with a list price of $5,000. If the supplier offers trade discount rates of 20/10/5, find the trade
discount (in $). (Find the single equivalent discount first.)
Single equivalent discount
Trade discount
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