Marketing Essentials

Section 2: Calculating Discounts

Answers to Practices

1. (A) Net amount on invoice $318,500 ($325,000 X .98) (B) Net amount per truck $63,700 ($65,000 X .98)
2. (A) $1,599.07 discount ($2,907.40 X .55);
3. (B) $1,308.33 amount payable ($2,907.40 - $1,599.07).
4. $104,382 (100% - 40% = 60%; $193,300 X .60 = $115,980; 100% - 10% = 90%; $115,980 X .90 = $104,382)

1. (A) No, because the minimum quantity is $10,000. (B) No, because the deadline date was September 15.
2. %% ($3,775 : $75,500 = .05)
3. $110,303.36 (100% - 6% = 94%; $117,344 X .94 = $110,303.36