Jasper Company is a wholesaler that buys merchandise in large quantities.Its supplier's catalog indicates a list price of $500 on merchandise Jasper intends to purchase,and offers a 30% trade discount for large quantity purchases.The cost of shipping for the merchandise is $7 per unit.Jasper's total purchase price per unit will be:
A)$507
B)$350
C)$357
D)$343
E)$493

Question

Quizplus · Accepted Answer

First, we need to calculate the amount of the trade discount that Jasper will receive. 
$500 x 0.30 = $150 trade discount

Next, we can calculate the net price (price after trade discount) 
$500 - $150 = $350 net price

Finally, we add the cost of shipping to get the total purchase price per unit: 
$350 + $7 = $357

Therefore, the total purchase price per unit for Jasper is $357. The best choice is C.

Jasper Company Is a Wholesaler That Buys Merchandise in Large