Answer :
After applying a chain discount of 8/3/1 to the list price of $3,800, the net price of the saws sold to Ace Hardware by Ryobi Limited is $3,357.21.
The question asks about calculating the net price of a set of saws sold by Ryobi Limited to Ace Hardware, after applying a chain discount of 8/3/1 to the list price of $3,800. To answer this, we will apply each discount in succession to find the final price.
First, apply the 8% discount:
List price: $3,800
Discount amount (8% of $3,800): $3,800 * 0.08 = $304
Price after the first discount: $3,800 - $304 = $3,496
Next, apply the 3% discount to the new price:
Discount amount (3% of $3,496): $3,496 * 0.03 = $104.88
Price after the second discount: $3,496 - $104.88 = $3,391.12
Finally, apply the 1% discount:
Discount amount (1% of $3,391.12): $3,391.12 * 0.01 = $33.91
Net price after all discounts: $3,391.12 - $33.91 = $3,357.21
Therefore, the correct answer is B. $3,357.21.
Answer: Option 'B' is correct.
Our net price will be $3357.21.
Explanation:
Since we have given that
The list price of set of saws = $3800
There are 3 successive discounts :
8%,3%,1%
So, if we apply first for 8% discount our new price becomes,
[tex]3800\times \frac{100-8}{100}=3800\times 0.92=\$3496[/tex]
Now, if we apply 3% on our deducted price , our new price becomes ,
[tex]3496\times \frac{100-3}{100}=3496\times 0.97=\$3391.12[/tex]
Now, we'll apply for 1% on our new deducted price , our net price becomes,
[tex]3391.12\times \frac{100-1}{100}=3391.12\times 0.99=\$3357.21[/tex]
Hence, our net price will be $3357.21.
Therefore, Option 'B' is correct.
