Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $6,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 16%. If the average sticker price (list price) of these remaining vehicles at your dealership is $28,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. (c) What is the net price (invoice price) to your dealership (in $)? (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a percent.
Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $6,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 16%. If the average sticker price (list price) of these remaining vehicles at your dealership is $28,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. (c) What is the net price (invoice price) to your dealership (in $)? (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a percent.
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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Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $6,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets.
As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 16%. If the average sticker price (list price) of these remaining vehicles at your dealership is $28,500, calculate the following.
(a)
What is the amount of the trade discount, including the incentive (in $)?
(b)
What is the trade discount rate (in percent)? Round to the nearest tenth of a percent.
(c)
What is the net price (invoice price) to your dealership (in $)?
(d)
If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a percent.
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