Hard Blues Music buys CDs with a list price of $32,000. If the wholesaler offers trade discounts of 3/2/1, find the net price factor.

Name: Hard Blues Music buys CDs with a list price of $32,000. If the wholesaler offers trade discounts of 3/2/1, find the net price factor.
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Question

Quizplus · Accepted Answer

The net price factor is found by subtracting each trade discount from 1 and then multiplying the results. For a 3/2/1 discount, it's calculated as (1 - 0.03) * (1 - 0.02) * (1 - 0.01) = 0.97 * 0.98 * 0.99 = 0.94109.

Hard Blues Music Buys CDs with a List Price of $32,000