1. 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?
2. Using your answer to the question above, what is the net dollar amount of that rose order?
To find the dollar amount of the trade discount, we need to multiply the list price of the roses by the trade discount percentages. In this case, the trade discounts are 15%, 20%, and 20%.
Step 1: Calculate the first trade discount:
$2,375 x 0.15 = $356.25
Step 2: Calculate the second trade discount:
$2,375 - $356.25 = $2,018.75
$2,018.75 x 0.20 = $403.75
Step 3: Calculate the third trade discount:
$2,018.75 - $403.75 = $1,615
$1,615 x 0.20 = $323
The total trade discount is the sum of all the individual trade discounts:
$356.25 + $403.75 + $323 = $1,083
Therefore, the dollar amount of the trade discount is $1,083.
Now, let's move on to the second question:
To find the net dollar amount of the rose order, we need to subtract the trade discount from the list price of the roses.
Step 1: Subtract the trade discount from the list price:
$2,375 - $1,083 = $1,292
Therefore, the net dollar amount of the rose order is $1,292.