Question

Jasper company 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 offers a 30% trade discount for large quantity purchases. the cost of shipping for the merchandise is $7 per unit. jasper's total purchase price per unit will be:

a.$507
b.$350
c.$357
d.$343
e.$493

Answer 1

Trade discount = $500 * 30% = $150

Total purchase price per unit = $500 - $150 + $7 = $357