Question

restaurant Distributing offers a commercial pasta maker for $980 with a trade discount of 25% what is the additional discount needed to match a competitor's price of a $661.50

Answer 1

Restaurant Distributing offers a commercial pasta maker for 980 with a trade discount of 25%. This means the company is offering to sell the product at the price calculated below;

`\begin{gathered} \text{Discount}=0.25 \\ \text{Discounted price=980-(980 x 0.25)} \\ \text{Discounted price=980-245} \\ \text{Discounted price=735} \end{gathered}`

However, a competitor is offering to sell at $661.50. This means the discount to be offered should be equal to 980 - 661.50. Hence the new discount amount shoud be $318.50. Therefore the additional discount would be calculated as follows;

`\begin{gathered} \text{Discount}=(318.5)/(980)*100 \\ \text{Discount}=(3185)/(98) \\ \text{Discount}=32.5 \end{gathered}`

This means, rather than offering a discount of 25%, Restaurant distributing should offer an additional discount of 32.5 - 25 which gives you 7.5%