Jasper Company is a wholesaler that buys merchandise in large quantities.Its supplier's catalog indicates a list price of $500 per unit on merchandise Jasper intends to purchase,and offers a 30% trade discount for large quantity purchases.The cost of shipping for the merchandise is $7 per unit.Jasper's total purchase price per unit will be:
A)$507.
B)$350.
C)$357.
D)$343.
E)$493.

Question

Quizplus · Accepted Answer

The trade discount offered by the supplier is 30%, so Jasper's purchase price per unit after the discount can be calculated as:

List price = $500 
Trade discount = 30% 
Discount = $500 x 0.30 = $150 
Purchase price = $500 - $150 = $350

Adding the cost of shipping per unit, the total purchase price per unit will be:

Purchase price = $350 + $7 = $357

Therefore, the best choice is C.

Jasper Company Is a Wholesaler That Buys Merchandise in Large