Fantasia Florist Shop purchases an order of imported roses with a list price of $2,375 less trade discounts of 15/20/20. What is the dollar amount of the trade discount?
Answer: 1306.25
4. Using your answer to the question above, what is the net dollar amount of that rose order?
Answer: 1068.75
Answers correct?
single discount = .85(.8)(.8) = .544
Dollar amount of discount = .544(2375) = $1292
net cost = 2375 - 1292 = $1083
or
single discount = .85(.8)(.8) = .544
so he must pay .456 of 2375
which is $1292
can you please provide how you have gotton this answer for 1 and 2.
To find the dollar amount of the trade discount for the imported roses, we need to calculate the discount at each stage. The trade discounts are given as 15/20/20, which means there are three successive discounts of 15%, 20%, and 20%.
Step 1: Calculate the first discount of 15%
List price = $2,375
Discount = 15/100 * $2,375 = $356.25
Step 2: Calculate the second discount of 20%
List price after the first discount = $2,375 - $356.25 = $2,018.75
Discount = 20/100 * $2,018.75 = $403.75
Step 3: Calculate the third discount of 20%
List price after the second discount = $2,018.75 - $403.75 = $1,615
Discount = 20/100 * $1,615 = $323
Now, let's calculate the total trade discount by summing up the discounts at each stage:
Total trade discount = $356.25 + $403.75 + $323 = $1,083
Therefore, the dollar amount of the trade discount is $1,083.
To find the net dollar amount of the rose order, we subtract the trade discount from the list price:
Net dollar amount = List price - Trade discount
Net dollar amount = $2,375 - $1,083 = $1,292
So, the correct answers are:
1. The dollar amount of the trade discount is $1,083.
2. The net dollar amount of the rose order is $1,292.