Question

15. ) Your company is purchasing items with a list price of $4500. Your company qualifies for the series of trade discounts 30/25/15. What is the net price you will pay?

Answer 1

Under the series of trade discount of 30/25/15, first we will calculate the discount of 30% on the list price of $4500 as per below:

Discount @ 30%:  $4500 * 30% = $1350

List price after 30% discount= $4500 - $1350

List price after 30% discount = $3151

Next, we will calculate the discount of 25% on the new list price after 30% discount as arrived above:

Discount @ 25% = $3151 * 25%

Discount @ 25% = $787.75

List price after 25% discount = $3151 - $787.75

List price after 25% discount = $2363.25

Next, we will calculate the discount of 15% on the new list price after 25% discount as arrived above:

Discount @ 15% = $2363.25 * 15%

Discount @ 15% = $354.4875

List price after 15% discount = $2363.25 - $354.4875

List price after 15% discount = $2008.7625

So, after allowing all 30,25 and 15% discounts, net price is $2008.7625.