Calculate the trade discount amount of merchandise with a list price of $5,000 less trade discounts of 40/20/15.

Question

Quizplus · Accepted Answer

The trade discount is calculated by applying each discount consecutively on the list price. First, a 40% discount is applied to the $5,000, which equals $2,000 (40% of $5,000), leaving $3,000. Then, a 20% discount is applied to the remaining amount, which equals $600 (20% of $3,000), leaving $2,400. Finally, a 15% discount is applied to the remaining amount, which equals $360 (15% of $2,400), leaving $2,040. The total discount amount is the original price minus the final price after all discounts: $5,000 - $2,040 = $2,960.

Calculate the Trade Discount Amount of Merchandise with a List