A trade discount of "list less 40-20-10," assuming that the list price is $500,would result in the retailer paying $240.00 for the item.

Question

Quizplus · Accepted Answer

The trade discount of "list less 40-20-10" means that the retailer can subtract a sequence of discounts from the list price.

First, the retailer would subtract 40% from the list price:
$500 - (0.40 x $500) = $300

Next, the retailer would subtract 20% from the discounted price:
$300 - (0.20 x $300) = $240

Therefore, the correct price after the trade discount would be $240, which means the statement is False.

A Trade Discount of "List Less 40-20-10," Assuming That the List