# Retail Math problem involving quantity discount. Have answer need to know the work!

• Dec 2nd 2008, 07:41 PM
tots
Retail Math problem involving quantity discount. Have answer need to know the work!
ok. I don't understand the wording of the problem I guess. I know the answer, it's at the back of my textbook, just not how to get it. A friend in my same major, who took the class last year can't figure it out either. Maybe we're both having an off day.

Problem: As an incentive, a supplier offers an additional 10% quantity discount on orders of more than 5 bikes. The normal trade discount offered by the supplier is 40%, 10% on the suggested list price of \$250 each. how much would a retailer remit if 8 bikes are purchased?

What I tried:
8 bikes x \$250 ea. = \$2,000 list price

Step 2. Find the billed cost:

\$2,000 total list price x 40% trade discount = \$800 trade discount
\$2,000 list price - \$800 trade discount = \$1200 billed cost

That's where I get stuck. If I take the 10% quantity discount from the \$1200... that comes to \$1080. But the answer supposed to be \$972. Am I even doing the right thing by taking a 40% trade discount off? The wording is so weird to me.

Thanks.
• Dec 3rd 2008, 02:51 AM
Hareza
this is my solution...
8 bikes = RM 250 x 8

Quote:

Originally Posted by tots
ok. I don't understand the wording of the problem I guess. I know the answer, it's at the back of my textbook, just not how to get it. A friend in my same major, who took the class last year can't figure it out either. Maybe we're both having an off day.

Problem: As an incentive, a supplier offers an additional 10% quantity discount on orders of more than 5 bikes. The normal trade discount offered by the supplier is 40%, 10% on the suggested list price of \$250 each. how much would a retailer remit if 8 bikes are purchased?

What I tried:
8 bikes x \$250 ea. = \$2,000 list price

Step 2. Find the billed cost:

\$2,000 total list price x 40% trade discount = \$800 trade discount
\$2,000 list price - \$800 trade discount = \$1200 billed cost

That's where I get stuck. If I take the 10% quantity discount from the \$1200... that comes to \$1080. But the answer supposed to be \$972. Am I even doing the right thing by taking a 40% trade discount off? The wording is so weird to me.

Thanks.

• Dec 3rd 2008, 02:58 AM
Hareza
mm this is my solution:

8 bikes = \$250 x 8
= \$2000

\$2000 x 40% = \$800
\$2000 - \$800 = \$1200

then have 10% trade discount on suggestion list price:
\$1200 x 10% = \$120
\$1200 - \$120 = \$1080

the incentive buy more than 5 bikes, so have additional 10% quantity discount :
\$1080 x 10% = \$108
\$1080 - \$108 = \$ 972

this is my solution..i don't know wheter u agree or not...
anyway..thnx for the question..
i'm doing revision of business math for my final exam.. (Clapping)(Clapping)

Quote:

Originally Posted by tots
ok. I don't understand the wording of the problem I guess. I know the answer, it's at the back of my textbook, just not how to get it. A friend in my same major, who took the class last year can't figure it out either. Maybe we're both having an off day.

Problem: As an incentive, a supplier offers an additional 10% quantity discount on orders of more than 5 bikes. The normal trade discount offered by the supplier is 40%, 10% on the suggested list price of \$250 each. how much would a retailer remit if 8 bikes are purchased?