The Mathematics of Money

358 Chapter 8 Mathematics of Pricing

2. Complete the following table by calculating the total net amount for each order, given the total list price, shipping/
   freight charge, and trade discount percent.

Order Total List Price Trade Discount Freight Net

A $22,500 8½% Included

B $717,035 45% $3,500

C $301,025 15.5% $1,475

D $9,036 62.75% Included

3. The list price for a new computer system is $1,295.99. The manufacturer offers a trade discount of 32%. Ampersand
   Computers ordered 20 of these systems. Find the net price for each system and the total amount for this order.


4. The list price for a college biochemistry textbook is $117.50. The publisher offers college bookstores a 22.5% trade
   discount. If the University of Erie bookstore ordered 182 copies of the book for the fall semester, fi nd the net price per
   book and the total for this order.


5. A fi tness equipment store ordered 40 exercise bikes (list price $479.99), 65 elliptical trainers (list $549.99), and 23
   rowing machines (list $375.99). The manufacturer offers a trade discount of 35%, and charges $250 for freight on all
   orders. Determine the total amount for this order.


6. An electronics retailer has just placed an order for a shipment of DVDs. Each DVD in the Hot New Classics line lists
   for $23.99, the Perennial Favorites line lists for $18.99 each, the Old-E-Good-E line lists for $12.99 each, and the
   Alan Smithee Selections line lists for $6.99 each. The manufacturer offers an 18% trade discount, and charges $0.25
   shipping for each DVD. If the order includes 400 Hot New Classics, 575 Perennial Favorites, 815 Old-E-Good-E, and
   1,750 Alan Smithee Selections, fi nd the total amount of the invoice.


7. A dehumidifi er manufacturer offers Hal’s Hardware Hut a 35% trade discount. If the net price is $90.32 for a
   dehumidifi er, what is the list price?


8. YummieNuttie Candy bars offers a 42% trade discount for their candy bars. Shipping is free. Jed’s Snack Hut ordered
   2,000 YummieNuttie bars for a total of $1,496.40. What is the list price for each candy bar?


9. StuffCo Stores sells greeting cards for 15% below list price. The greeting card manufacturers give StuffCo a 45% trade
   discount.

a. Determine the retail price for a card that lists for $3.99.

b. What is StuffCo’s gross profi t margin on greeting cards?

c. What is StuffCo’s markup percent based on cost?

10. A grocery store chain receives a 7.5% trade discount from Ejner’s Authentic Amish Salsa Company. The store discounts
    the salsa 3.5% below list price.

a. What is the grocer’s gross profi t margin on this product?