Question

A stainless steel gas grill is list priced at $695. The manufacturer offers a series discount of 25/20/10 to wholesalers and 25/20 series discount to retailers. What is the difference between the prices ?

Answer 1

Given that the gas grill is list priced at $695.

To determine the series discount of 25/20/10 to wholesalers and 25/10 series discount to retailers.

Solution:

Series Discount to wholesalers

$\begin{gathered} a.25\text{ \% of \ 695} \\ =\frac{25}{100}\times695 \\ =0.25\times695 \\ =\text{ \ 173.75} \end{gathered}$

b. 20% of ($695 - 173.75)

$\begin{gathered} b.20\text{ \% of (\ 695-\ 173.75)} \\ =\frac{20}{100}\times\text{ \ 521.25} \\ =0.2\times\text{ \ 521.25} \\ =\text{ \ 104.25} \end{gathered}$

c. 10% of ($521.25 - $104.25)

$\begin{gathered} c.10\text{ \% of (\ 521.25-\ 104.25)} \\ =\frac{10}{100}\times\text{ \ 417} \\ =0.10\times\text{ \ 417} \\ =\text{ \ 41.70} \end{gathered}$

Therefore the discount price to wholesalers is

$\begin{gathered} \text{ \ 173.75+\ 104.25+\ 41.70} \\ =\text{ \ 319.70} \end{gathered}$

Hence, the price paid by the wholesalers is

$\begin{gathered} \text{ \ 695-\ 319.70} \\ =\text{ \ 375.30} \end{gathered}$

Series Discount to retailers

a. 25% of $695

$\begin{gathered} a.25\text{ \% of \ 695} \\ =\frac{25}{100}\times\text{ \ 695} \\ =0.25\times\text{ \ 695} \\ =\text{ \ 173.75} \end{gathered}$

b. 20% of ($695 - $173.75)

$\begin{gathered} b.20\text{ \% of (\ 695-\ 173.75)} \\ =\frac{20}{100}\times\text{ \ 521.25} \\ =0.20\times\text{ \ 521.25} \\ =\text{ \ 104.25} \end{gathered}$

Therefore, the discount price to retailers is

$\begin{gathered} \text{ \ 173.75+\ 104.25} \\ =\text{ \ 278} \end{gathered}$

Hence, the price paid by retailers is

$\begin{gathered} \text{ \ 695-\ 278} \\ =\text{ \ 417} \end{gathered}$

Difference in Prices

$\begin{gathered} \text{ \ 417-\ 375.30} \\ =\text{ \ 41.70} \end{gathered}$

Therefore, the difference in prices is $41.70