Volume ($x) |
Discount Amount |
$300 ≤ x < $1000 |
3% |
$1000 ≤ x < $3000 |
5% |
$3000 ≤ x < $5000 |
7% |
$5000 ≤ x |
10% |
Assume the volume discounts in Table 1 apply only to that portion of the volume in each interval. That is, the discounted price for a $4000 purchase would be computed as follows:
300 + .97(700) + .95(2000) +.93(1000) = 3,809
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