Question

What is the approximate total revenue in dollars when 1600 CDs were sold, with 30% sold at a 55% discount, 10% sold at a 20% discount, and the rest sold at the full price of $47.95?

(A) $10,369
(B) $16,569
(C) $10,569
(D) $10,234
(E) $10,669

Answer 1

To find the total revenue, the number of CDs sold at each discount level was calculated, then the sale price after each discount was determined. The revenue from each segment was then calculated and summed up to get the total revenue of $62,504, which doesn't match the provided options.

Step-by-step explanation:

To calculate the approximate total revenue from the sale of 1600 CDs, we need to take into account the differing discounts applied to portions of these sales. First, let’s calculate the number of CDs sold at each discount level:

• 30% at a 55% discount: 480 CDs (30% of 1600)
• 10% at a 20% discount: 160 CDs (10% of 1600)
• The rest at full price: 960 CDs (100% - 30% - 10% = 60% of 1600)

Next, we determine the sale price after each discount:

• 55% discount: $21.53 per CD (45% of $47.95)
• 20% discount: $38.36 per CD (80% of $47.95)
• Full price: $47.95 per CD

Finally, we calculate the revenue for each segment and add them up:

1. 480 CDs at $21.53: $10,334.40
2. 160 CDs at $38.36: $6,137.60
3. 960 CDs at $47.95: $46,032.00

Total Revenue = $10,334.40 + $6,137.60 + $46,032.00 = $62,504

This calculation shows that the options provided in the question do not match the calculated total revenue. It is important to carefully analyze mathematical problems and perform accurate calculations to arrive at the correct results.