Problema Solution
Raul pardo shipped tools and supplies at 234892 with successive discounts of 15% and 10%. Trucking and other purchasing expenses totaled 8610 while overhead was 36285. He sold all equipment for 249656 allowing a 5% discounts for cash. Purchases what net profit or loss did Mr. Pardo realize on his transaction?
Answer provided by our tutors
After successive discounts of 15% and 10% the amount of $234,892 is:
(1 - 0.15)(1 - 0.1)*234892 = 0.85*0.9*234892 = $179,692.38
total expenses = 8,610 + 36,285 = $44,895
sell price (when paid in cash): (1 - 0.05)*249,656 = 0.95*249,656 = $237,173.2
$237,173.2 - ($179,692.38 + $44,895) = $12,585.82 profit.