Question

A stainless steel gas grill is list priced at $695. The manufacturer offers a series discount of 25/20/10 to wholesalers and 25/20 series discount to retailers. What is the difference between the prices ?

Answer 1

Given that the gas grill is list priced at $695.

To determine the series discount of 25/20/10 to wholesalers and 25/10 series discount to retailers.

Solution:

Series Discount to wholesalers

`\begin{gathered} a.25\text{ \% of \$695} \\ =(25)/(100)*695 \\ =0.25*695 \\ =\text{ \$173.75} \end{gathered}`

b. 20% of ($695 - 173.75)

`\begin{gathered} b.20\text{ \% of (\$695-\$173.75)} \\ =(20)/(100)*\text{ \$521.25} \\ =0.2*\text{ \$521.25} \\ =\text{ \$104.25} \end{gathered}`

c. 10% of ($521.25 - $104.25)

`\begin{gathered} c.10\text{ \% of (\$521.25-\$104.25)} \\ =(10)/(100)*\text{ \$417} \\ =0.10*\text{ \$417} \\ =\text{ \$41.70} \end{gathered}`

Therefore the discount price to wholesalers is

`\begin{gathered} \text{ \$173.75+\$104.25+\$41.70} \\ =\text{ \$319.70} \end{gathered}`

Hence, the price paid by the wholesalers is

`\begin{gathered} \text{ \$695-\$319.70} \\ =\text{ \$375.30} \end{gathered}`

Series Discount to retailers

a. 25% of $695

`\begin{gathered} a.25\text{ \% of \$695} \\ =(25)/(100)*\text{ \$695} \\ =0.25*\text{ \$695} \\ =\text{ \$173.75} \end{gathered}`

b. 20% of ($695 - $173.75)

`\begin{gathered} b.20\text{ \% of (\$695-\$173.75)} \\ =(20)/(100)*\text{ \$521.25} \\ =0.20*\text{ \$521.25} \\ =\text{ \$104.25} \end{gathered}`

Therefore, the discount price to retailers is

`\begin{gathered} \text{ \$173.75+\$104.25} \\ =\text{ \$278} \end{gathered}`

Hence, the price paid by retailers is

`\begin{gathered} \text{ \$695-\$278} \\ =\text{ \$417} \end{gathered}`

Difference in Prices

`\begin{gathered} \text{ \$417-\$375.30} \\ =\text{ \$41.70} \end{gathered}`

Therefore, the difference in prices is $41.70