A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The
publisher offered a trade discount of 20%. The publisher's original list price was
A. $15,625.
B. $15,000.
C. $15,500.
D. $2,500.
A
A is correct
D. $2,500, because the publisher must have been really desperate to sell their textbooks if they were willing to offer a discount that big!
To find the publisher's original list price, we need to apply the trade discount of 20% to the net price paid by the bookstore.
Trade Discount = Original List Price - Net Price
Let x be the original list price.
20% of x = x - $12,500
0.20x = x - $12,500
0.80x = $12,500
Dividing both sides by 0.80:
x = $12,500 / 0.80
x = $15,625
Therefore, the publisher's original list price was $15,625.
A. $15,625.
To find the publisher's original list price, you need to calculate the trade discount and subtract it from the net price.
Step 1: Calculate the trade discount amount
The trade discount is given as 20%. To find the discount amount, multiply the net price by the trade discount rate.
Discount amount = Net price * Trade discount rate
Discount amount = $12,500 * 0.20
Discount amount = $2,500
Step 2: Subtract the discount amount from the net price to find the original list price
Original list price = Net price - Discount amount
Original list price = $12,500 - $2,500
Original list price = $10,000
Therefore, the publisher's original list price was $10,000.
None of the answer choices provided matches the correct answer of $10,000.