Question

Marriott hotels purchased nine irobot roomba i7 for $870 each. It received a 15% discount for buying more than five and an additional 6% discount for immediate delivery. Terms of payment were 410,n30. Marriott hotels pays the bill within the cash discount period. How much should the check be written for?

Answer 1

The Marriott hotels should write the check for $6,004.97 after applying a 15% volume discount, an additional 6% immediate delivery discount, and a 4% cash discount for paying within the 10-day period as specified by the terms 410, n30.

Step-by-step explanation:

To calculate the amount Marriott hotels should write the check for, let's first determine the initial total cost of the nine iRobot Roomba i7s, then apply the discounts successively, and finally consider the terms of payment.

• Initial total cost = 9 (number of Roombas) × $870 (cost per Roomba) = $7,830
• Total after first discount (15%) = $7,830 × (1 - 0.15) = $6,655.50
• Total after additional discount (6%) = $6,655.50 × (1 - 0.06) = $6,255.17
• Terms of payment: 410,n30 means a 4% cash discount if paid within 10 days; otherwise, the net amount is due within 30 days.
• Total after cash discount (4%) = $6,255.17 × (1 - 0.04) = $6,004.97

Since Marriott hotels pays the bill within the cash discount period, they should write the check for $6,004.97.