manufacturer estimates that consumers will accept a price of $275 for a snowboard.If the manufacturer expects to offer trade discounts of 35/15/5 to retailers,wholesalers,and jobbers,respectively,what price will the manufacturer receive for the snowboard?

Question

Quizplus · Accepted Answer

The manufacturer receives the net price after applying the trade discounts sequentially: $275 * (1 - 0.35) * (1 - 0.15) * (1 - 0.05) = $144.34.

Manufacturer Estimates That Consumers Will Accept a Price of $275