Assume that the list price of an item is $1,200 and that the chain of discounts is 40-20-10.How much would a retail buyer pay?
A) $480.00
B) $518.40
C) $576.00
D) $720.00
E) $840.60

Question

Quizplus · Accepted Answer

To calculate the amount a retail buyer would pay, we need to apply the discounts one at a time.

First, the retail price after the 40% discount would be: 
$1,200 x 0.6 = $720.

Next, we apply the 20% discount to that price: 
$720 x 0.8 = $576.

Finally, we apply the 10% discount to get the final price: 
$576 x 0.9 = $518.40.

Therefore, the retail buyer would pay $518.40. The correct answer is B.

Assume That the List Price of an Item Is $1,200