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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 54
A General Motors incentive program designed to reduce inventory of certain low-selling models offers a $7,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets.
As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from GM is 18%. If the average sticker price (list price) of these remaining vehicles at your dealership is $23,500, calculate the following.
a. What is the amount of the trade discount, including the incentive?
b. What is the trade discount rate? Round to the nearest tenth of a percent.
c. What is the net price (invoice price) to your dealership?
d. If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a percent.
e. (Optional) Although these incentive prices reflect extraordinary discounts to the consumer, what other factors should a consumer consider before purchasing a "discontinued" brand of vehicle?
As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from GM is 18%. If the average sticker price (list price) of these remaining vehicles at your dealership is $23,500, calculate the following.
a. What is the amount of the trade discount, including the incentive?
b. What is the trade discount rate? Round to the nearest tenth of a percent.
c. What is the net price (invoice price) to your dealership?
d. If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a percent.
e. (Optional) Although these incentive prices reflect extraordinary discounts to the consumer, what other factors should a consumer consider before purchasing a "discontinued" brand of vehicle?
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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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