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The Representative for a European Ski Manufacturer Offers Snow 'N

Question 26

Essay

The representative for a European ski manufacturer offers Snow 'n Surf Sporting Goods a regular discount of 25%, a volume discount of 10% for an order of at least 100 pairs of skis, and an early booking discount of 5% for orders placed before July 1.
a) If Snow 'n Surf is eligible for all three discounts on skis listed at a suggested retail price of $890, what is the net price per pair of skis?
b) Assuming that Snow 'n Surf qualifies for the volume discount, what is the dollar amount of the early-order discount per pair of skis?
c) The net price after all three discounts on a less expensive model of skis is $410.40. What is the suggested retail price?
d) What single trade discount rate would be equivalent to the three trade discounts?

Correct Answer:

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a) $570.71...

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