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?
The answer is $972.
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.