Problema Solution

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?

Answer provided by our tutors

Equivalent single discount:

d = 1- [(1-d1) (1-d2) (1-d3)]

d = 1 - (0.85*0.8*0.8)

d=0 .456

Trade discount amount is $2,375*0.456 = $1,083