Question

Flashdance Furniture Company ordered 25 sofas at a list price of $1,950 each. The company received a 24% trade discount, plus an additional 5% off (after the tradediscount) if the final invoice was over $30,000. What was the wholesale price paid by the company?$30,678.54$35,197.50$37,123.90$38,348.62None of these choices are correct.

Answer 1

I'll solve this problem using proportions

1950 x 25 = $48750

Original price = $48750

Considering the 5% discount

48750 ------------------- 100

x ------------------- 5

x = (5 x 48750)/100

x = 2437.5

Price = 48750 - 2437.5

= 46312.5

46312.5 ------------------- 100

x ------------------ 24

x = (24 x 46312.5) / 100

x = 1111500/100

x = 11115

Final price = 46312.5 - 11115

= $ 35197.5

The second choice is the correct solution.