A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher (not the total cost)?

Question

Quizplus · Accepted Answer

The initial price per dishwasher is $550. However, since the company is buying more than 10, they are eligible for a $150 quantity discount, so the price per dishwasher goes down to $400.

Then, financing charges of $20 per unit are added, bringing the price up to $420 per dishwasher.

Finally, the company gets a trade-in credit of $10 per dishwasher, so that reduces their cost to $410 per dishwasher. Thus, the final price the company will pay for each dishwasher is $410.

A Company That Manages Apartments Decides to Buy 15 New