McClan Paving buys asphalt with a list price of $17,000. If the supplier extends trade discounts of 42/22/11, find the net price using the complement method.

Question

Quizplus · Accepted Answer

The complement method involves subtracting each discount rate from 100% to find the complement, then multiplying the complements together and finally applying the total complement to the list price. The trade discounts are 42%, 22%, and 11%. Their complements are 58% (100% - 42%), 78% (100% - 22%), and 89% (100% - 11%), respectively. Multiplying these complements together: 0.58 * 0.78 * 0.89 = 0.402684. Applying this to the list price: $17,000 * 0.402684 = $6,844.20.

McClan Paving Buys Asphalt with a List Price of $17,000