Question

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher?

Answer 1

The final price the company will pay for each dishwasher is $410.

Step-by-step explanation:

To find the final price the company will pay for each dishwasher, we need to calculate the total cost per dishwasher after applying the quantity discount and accounting for the financing charges and trade-in value.

List price of each dishwasher: $550

Quantity discount: $150 per unit

Financing charges: $20 per unit

Trade-in value: $10 per dishwasher

Calculation: List price - Quantity discount + Financing charges - Trade-in value

Final price per dishwasher = $550 - $150 + $20 - $10 = $410

Answer 2

Answer: $410 per dishwasher

Explanation: From the question above, 15 new dishwashers were bought at a list price of $550 each.

it is eligible for a $150-per-unit quantity discount because it is buying more than 10 units at once.

Financing charges total $20 per unit.

The company gets $10 per dishwasher for the 15 dishwashers traded in.

What is the final price the company will pay for each dishwasher?

Initial cost per unit is $550

Less discount of $150

Less trade in discount of $10

Add finance charge of $20

Cost per dish washer = $550 - $150 - $10 + $20 = $410.