first string sports can purchase sneakers for $450 per dozen less trade discounts of 14/12 from ideal shoes. Fancy footwear is offering the same sneakers for $435 less trade discounts of 18/6. Which supplier offers a lower net price?
would i be correct if i said first string sports suppliers offers a lower net price?
To determine which supplier offers a lower net price, we need to calculate the net price from each supplier.
For First String Sports:
- Retail price: $450 per dozen
- Trade discount: 14/12 (meaning a discount of 14% for payment within 12 days)
To calculate the trade discount, we can use the formula:
Trade Discount = Retail Price * (Discount Rate/100)
Trade Discount = $450 * (14/100)
Trade Discount = $63
Net Price = Retail Price - Trade Discount
Net Price = $450 - $63
Net Price = $387
For Fancy Footwear:
- Retail price: $435
- Trade discount: 18/6 (meaning a discount of 18% for payment within 6 days)
Trade Discount = $435 * (18/100)
Trade Discount = $78.30
Net Price = Retail Price - Trade Discount
Net Price = $435 - $78.30
Net Price = $356.70
Therefore, the lower net price is offered by Fancy Footwear at $356.70 compared to First String Sports at $387.