Question

A manufacturer of skis offered chain discounts of 10/5/4 to many of its customers. Joe Jones ordered skis that had a total list price of $149,500. The amount of the trade discount is:

Answer 1

,Okay, so here is how to calculate the amount of the trade discount:

I: $149,500 * .10 (10%) = 14,950 (this is the 10% discount)
149,500 - 14,950 = 134,550 (how much it costs with a 10% discount)

II: 134,550 * .5 (5%) = 6727.50
134,550 - 6727.50 = 127,822.50

III: 127,822.50 * .4 (4%) = 5112.90

The amount of the trade discount is: $14,950 + $6727.50 + $5112.90 = 26,790.40 dollars.