Question

Walgreens is offered a chain discount on cosmetics from Libby Corp. of 8/5/2; Roma Company offers a chain discount of 7/6/4. What is the highest discount offered?

Answer 1

The highest discount offered by Roma Company.

Explanation:

Let the cosmetics marked price be 100.

It is given that Walgreens is offered a chain discount on cosmetics from Libby Corp. of 8%, 5%, 2%.

The selling price of cosmetics after chain discount is

`100(1-(8)/(100))(1-(5)/(100))(1-(2)/(100))=85.652`

Discount = Marked price - Selling price

`Discount=100-85.652=14.348`

The total discount percentage in Walgreens is 14.348%.

It is given that Roma Company is offered a chain discount on cosmetics of 7%, 6%, 4%.

The selling price of cosmetics after chain discount is

`100(1-(7)/(100))(1-(6)/(100))(1-(4)/(100))=83.9232`

Discount = Marked price - Selling price

`Discount=100-83.9232=16.0768`

The total discount percentage in Roma Company is 16.0768%.

Since 16.0768% > 14.348%, therefore the highest discount offered by Roma Company.