Question

A retailer returned 2700 defective items to the manufacturer and received a credit for the retail price of $0.83 or 834/34 per item less a discount of of the retail price. What was the amount of the credit received by the retailer?

Answer 1

credit gain by retailer is $2257.39

Explanation:

Given data:

Retaile price 83 4/3 c or 84.33c

Let Discount rate 6/7

Discount amount = (6/7)% of 84.33 c = 0.7228 C

Net credit received = 84.33c - 0.7228c = 83.607c

Net credit received = 83.607 c

Item required = 2700

Total discount = 2700 × 83.0607 = 225739.44c

Total discount = $2257.39

credit received by retailer is $2257.39