Question

"jasper company, inc. Is a wholesaler that buys merchandise in large quantities. Its supplier's catalog indicates a list price of $500 per unit on merchandise jasper intends to purchase, and the supplier offers a 30% trade discount for large quantity purchases. The cost of shipping the merchandise is $7 per unit. Jasper's net purchase price per unit will be:"

Answer 1

Answer: Jasper's net purchase price unit is $357.

Since Jasper orders in large quantities, Japser is eligible for the trader's discount at 30%.

So, the price per unit will be:

`Price per unit after discount = 500 * (1 - 0.3) = 350`

Shipping costs are charged by the shipper and Jasper doesn't get any discounts from the shipper. So, we add shipping costs per unit to the discounted price per unit to arrive at the purchase price per unit.

`Purchase Price = Discounted Price + Shipping Costs`

`Purchase Price = 350 + 7 = 357`