A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is the single equivalent trade discount?
A) 50.4%
B) 50%
C) 49.6%
D) 40%
E) 60%

Question

Quizplus · Accepted Answer

The single equivalent trade discount is calculated by multiplying the complements of the discounts: (1-0.30)*(1-0.20)*(1-0.10) = 0.504, which means a 49.6% discount.

A Product Costing $350, Less 30%, 20%, and 10%, Sells