A wholesaler sells to furniture stores with discounts of 45% and 15%. Individual designers are allowed...

A wholesaler sells to furniture stores with discounts of 45% and 15%. Individual designers are allowed a discount of 50%. On an order with total list price of $2,860, what is the difference in cost to these two purchasers

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Expert Solution

Solution:

Calculation of Cost to Furniture stores

Cost of Furniture = List Price * (1 - 0.45) * (1 - 0.15)

= $2,860 * (0.55) * (0.85)

= $1,337.05

Calculation of Cost to Individual Designers

Cost of Furniture = List Price * (1 - 0.50)

= $2,860 * (0.50)

= $1,430

Calculation of difference in cost for two Purchasers

Difference in Cost = Cost to Individual Designers - Cost to Furniture Stores

= $1,430 - $1,337.05

= $92.95

ekkarill92 answered 1 year ago

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