Question

Fantasia Florist Shop purchases an order of imported roses with a list price of $2,375 less trade discounts of 15/20/20. What is the dollar amount of the trade discount? Using your answer to the question above, what is the net dollar amount of that rose order? What is the net price factor for trade discounts of 25/15/10? Use the net price factor you found in the previous question to find the net price of a couch listed for $800.

Answer 1

The equivalent single discount
= (.85)(.8)(.8) = .544

So the dollar amount of the discount
= 2375(.544) = $1292

so net amount of order = 2375 - 1292 = $1083

the net price for the trade discount = .544 (I found this first)

final price for a $800 couch using the above
= 800(1 - .544) = $364.80

Answer 2

Back up a bit,

I didn't catch the NEW discounts for the last question

for 25/15/10
the single discount = .75(.85)(.9) = .57375

so final price for that $800 couch
= 800(1 - .57375) = $341.00