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Anselmo's Engineering buys circuit boards with a list price of

$34,000. If the supplier extends trade discounts of 43/33/13, what
is the trade discount?

User Icebat
by
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1 Answer

4 votes

Final answer:

The trade discount for Anselmo's Engineering on the circuit boards with a list price of $34,000 and trade discounts of 43/33/13 is $2,560.58.

Step-by-step explanation:

The trade discount is the amount by which the list price is reduced when purchasing items in bulk or from a specific supplier. In this case, the supplier offers trade discounts of 43/33/13, which means that there are three levels of discounts based on the quantity purchased. The first level is 43% off, the second level is an additional 33% off the discounted price, and the third level is an additional 13% off the already discounted price.

To calculate the trade discount, we can multiply the list price by the decimal equivalents of the discounts: 43% = 0.43, 33% = 0.33, and 13% = 0.13. We then multiply the resulting discounted price by the respective decimals and subtract each successive discount from the previous discounted price.

So, the trade discount for these circuit boards would be:

Trade Discount = $34,000 * 0.43 * 0.33 * 0.13 = $2,560.58

User Hanz
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