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Temka [501]
3 years ago
13

Mel's Furniture received an invoice dated September 27 for 5 bedroom sets at $3,000 each. The invoice indicated a chain discount

of 5/8/3. The seller of the furniture prepaid the freight of $200 (FOB Shipping Point). Terms were 2/10, EOM. Assuming that Mel pays within the discount period, what is the total payment amount?
Mathematics
1 answer:
LenKa [72]3 years ago
5 0

Answer: $12,916.70

Step-by-step explanation:

Given the following:

Invoice received :

Bedroom set = 5

Cost per set = $3,000

Chain discount = 5/8/3

Freight cost = $200

If Mel pays within the discount period:

Chain discount given = 5/8/3

Therefore, net equivalent price rate equals:

(1 - 0.05) × (1 - 0.08) × (1 - 0.03) =

0.95 × 0.92 × 0.97 = 0.84778

Net price = total cost × 0.84778

($3000 × 5) × 0.84778

$15000 × 0.84778 = $12,716.7

Net equivalent price + FOB Shipping

$12,716.7 + $200 = $12,916.70

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