Question

A distributor of batteries received complete payment of $8,300.50 for ten automobile batteries that it sold to a wholesaler after a trade discount of 20%. a. what was the list price of each battery? $0.00 round to the nearest cent

Answer 1

To find the list price of each battery before a 20% discount, divide the total payment of $8,300.50 by 0.80, then divide that result by the number of batteries, resulting in a list price of $1,037.56 per battery when rounded to the nearest cent.

Step-by-step explanation:

The question asks to calculate the list price of each battery sold to a wholesaler after a trade discount. Since a complete payment of $8,300.50 was made for ten automobile batteries with a 20% discount, we first need to determine the discounted price per battery and then find the original list price before the discount.

To calculate the original price per battery, we start by finding the total amount paid before the discount:

• Total payment / (1 - discount rate) = original total list price of batteries
• $8,300.50 / (1 - 0.20) = $8,300.50 / 0.80 = $10,375.625

Now, we determine the list price of each battery by dividing the original total list price by the number of batteries:

• Original total list price / number of batteries = list price per battery
• $10,375.625 / 10 = $1,037.5625

Finally, rounding to the nearest cent, each battery had a list price of $1,037.56.