Answer: 0.0160768
Explanation:
Let the marked price of the cosmetic be 100.
From the question,
Walgreens is offered a chain discount on cosmetics from Libby Corp. of 8%, 5% and 2%. The selling price of the cosmetic after the chain discount will be:
100 × (1 - 8/100) × (1 - 5/100) × (1 - 2/100)
= 100 × (1 - 0.08) × (1 - 0.05) × (1 - 0.02)
= 85.652
Discount = Marked price - Selling price
Discount = 100 - 85.652
Discount = 14.348
Discount percent = 14.348% = 0.14348
Roma Company offers a chain discount of 7%, 6% and 4%.
The selling price of the cosmetic after the chain discount will be:
100 × (1 - 7/100) × (1 - 6/100) × (1 - 4/100)
= 100 × (1 - 0.07) × (1 - 0.06) × (1 - 0.04)
= 83.9232
Discount = Marked price - Selling price
Discount = 100 - 83.9232
Discount = 16.0768
Discount percent = 16.0768% = 0.0160768
The highest discount offered is 0.0160768.