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b. What is the grocer’s markup based on cost for this product?- A new car lists for $29,995. The invoice price that the manufacturer charges the dealer is $26,348. What is the percent
trade discount?
B. Series Discounts- A leather belt that was originally priced at $24.95 is put on sale for 15% off. Two weeks later, the store cuts the price by
an additional 25%. Find the price of the belt. - A solar-powered radio normally lists for $79.95. A retailer normally sells this radio for 10% discount to list. During
a clearance sale, the price is reduced by an additional 25%. Find the clearance sale price for the radio. - Find the single discount equivalent to successive 20% and 30% discounts.
- a. Find the single discount equivalent to successive 15% and 35% discounts.
b. Find the single discount equivalent to successive 35% and 15% discounts. - Eddies’ Bike Shop sells all bikes for 12% below list. In September, the shop cut its prices by an additional 15%. In
October, it has an end-of-season clearance where it cuts prices on all bikes in stock by an additional 25%. Suppose
that a bike lists for $949.95. What would the price be for this bike at the end of season clearance? What is the single
equivalent discount? - As mentioned in this section, successive discounts are sometimes stated in a way that is not mathematically correct.
Suppose that Hausdorff’s Department Stores puts out a fl yer advertising that “we’ve cut all our prices by 40%, and this
Saturday only, take an additional 25% off!”
a. A sweater normally sells for $89.95. What two different prices might you be charged if you buy this sweater at
Hausdorff’s Saturday sale?
b. Which price is the mathematically correct one?C. Cash Discounts- An invoice is dated July 21, 2007, and the order arrived on August 2, 2007. The manufacturer offers a discount for
payment within 20 days. To take advantage of this discount, when must you make payment if the dating method is
(a) ordinary dating, (b) end of month, (c) receipt of goods, or (d) postdated as of September 1, 2007. - Charlie’s Anvil Sales offers its customers a 3% discount for payment made within 10 days. An invoice is dated January
19, 2008, and the order arrived on January 22, 2008. To take advantage of this discount, by when must you make
payment if the dating method is (a) ordinary dating, (b) end of month, (c) receipt of goods, or (d) postdated as of
February 6, 2008.
Exercises 8.3 359