Question

A manufacturer of skis offered chain discounts of 10/5/4 to many of its customers. Joe Jones ordered skis that had a total list price of $149,500. The amount of the trade discount is:

a. $122,709.60
b. $26,970.40
c. $26,790.40
d. $122,907.69
e. None of these

Answer 1

The correct answer is A. $122709.60

Explanation:

The chain discounts offered by the manufacturer = 10% , 5% , 4%

Total Price of ordering the skis = $149500

First Discount is given to be 10%

So, Total Price after discount of 10% = 149500 - 10% of 149500

= 149500 - 14950

= $134550

Second Discount is given to be 5%

So, Total Price after discount of 5% = 134550 - 5% of 134550

= 134550 - 6727.50

= $127822.50

Third Discount is given to be 4%

So, Total Price after discount of 4% = 127822.50 - 4% of 127822.50

= 127822.50 - 5112.9

= $122709.60

Hence, Final Price of the trade discount = $ 122709.60

Therefore, the correct answer is A. $122709.60

Answer 2

first,
149,500 * .10 = 14,950
149,500 - 14,950 = 134,550

then,
134,550 * .05 = 6727.50
134,550 - 6727 = 127,822.55
127,822.50 * .04 = 5112.90

trade discount = 14950 + 6727.50 + 5112.90
26790.40

hope this help