A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for 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 15 used trade-ins. What is the final price the company will pay for EACH dishwasher?

Question

Quizplus · Accepted Answer

The price before the quantity discount is:

15 dishwashers × $550/dishwasher = $8,250

The quantity discount reduces the price by $150 per unit:

15 dishwashers × $150/dishwasher = $2,250

So the price after the quantity discount is:

$8,250 – $2,250 = $6,000

Adding the financing charges:

15 dishwashers × $20/dishwasher = $300

Therefore, the price before the trade-in allowance is:

$6,000 + $300 = $6,300

Subtracting the trade-in allowance:

15 dishwashers × $10/dishwasher = $150

The final price is:

$6,300 – $150 = $6,150

Dividing this price by the number of dishwashers, we get the price per dishwasher:

$6,150 / 15 = $410

Therefore, the final price the company will pay for EACH dishwasher is $410.

A Company That Manages Apartments Decides to Buy 15 New