Sam's Discount Appliance Company just received a shipment of 30 washing machines.The invoice list price for each washing machine is $365.The manufacturer's catalogue indicates that Sam can take the following discounts: 30/15/10 with 30 percent being the normal mark up,15 percent for free delivery and hook up,and 10 percent for local advertising and point- of- sale displays.If Sam performs all services required by the vendor,his single equivalent discount will be

Question

Quizplus · Accepted Answer

The single equivalent discount is calculated by multiplying the complements of the discounts: (1 - 0.30) * (1 - 0.15) * (1 - 0.10) = 0.70 * 0.85 * 0.90 = 0.5355. The equivalent discount is 1 - 0.5355 = 0.4645, or 46.45%.

Sam's Discount Appliance Company Just Received a Shipment of 30