Cola Company is offering its preferred customers a 25% discount on its most popular product normally listed at $40 each.

a) What is the net price of each product to Cola Company's preferred customers? For full marks your answer(s) should be rounded to the nearest cent.

b) SouthCo also sells the same product but with a list price of $59. What rate of discount should SouthCo give to match Cola Company's price to its preferred customers? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56%

a) To find the net price of each product with a 25% discount, we can use the following formula:

Net Price = List Price - (List Price * Discount Rate)

List Price = $40
Discount Rate = 25% = 0.25

Substituting these values into the formula:

Net Price = $40 - ($40 * 0.25)
Net Price = $40 - $10
Net Price = $30

Therefore, the net price of each product to Cola Company's preferred customers is $30.

b) To find the rate of discount SouthCo should give to match Cola Company's price, we can rearrange the formula from part a) as follows:

Discount Rate = (List Price - Net Price) / List Price * 100%

List Price = $59
Net Price (from part a) = $30

Substituting these values into the formula:

Discount Rate = ($59 - $30) / $59 * 100%
Discount Rate = $29 / $59 * 100%
Discount Rate ≈ 49.15%

Therefore, SouthCo should give a discount of approximately 49.15% to match Cola Company's price to its preferred customers.