company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns.Because the company is buying more than 10 dishwashers,it is eligible for a $150-per-unit quantity discount.Financing charges total $20 per unit.The company gets $10 per dishwasher for the 15 dishwashers traded in.What is the final price the company will pay for each dishwasher?

Question

Quizplus · Accepted Answer

The list price of one dishwasher is $550.
15 dishwashers cost 15 x $550 = $8250.
The quantity discount is $150 per unit, so 15 dishwashers cost a total of 15 x $150 = $2250 less.
The discounted price for 15 dishwashers is $8250 - $2250 = $6000.
Financing charges amount to $20 per unit, so for 15 dishwashers this is 15 x $20 = $300.
The company gets $10 per dishwasher for the 15 dishwashers traded in, so this is 15 x $10 = $150.
The final price the company pays for each dishwasher is therefore ($6000 + $300 - $150) / 15 = $410.

Company That Manages Apartments Decides to Buy 15 New Dishwashers