Suppose a certain car manufacturer's 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, I your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is \( 17 \% \). If the average sticker price (list price) of these remaining vehicles at your dealership is \( \$ 24,500 \), calculate the following. (a) What is the amount of the trade discount, including the wincentive (in \( \$ \) )? <

To calculate the trade discount amount, first, find the normal trade discount by multiplying the sticker price by the trade discount percentage: \[ \text{Trade Discount} = \$24,500 \times 0.17 = \$4,165 \] Next, add the dealer incentive to the trade discount: \[ \text{Total Trade Discount Including Incentive} = \$4,165 + \$7,000 = \$11,165 \] So, the amount of the trade discount, including the incentive, is \( \$11,165 \). Now you can visualize how dealerships can turn leftover inventory into profits while clearing up space for new models! Be sure to double-check the calculations, especially when dealing with percentages and significant figures. It’s a common mistake to either miscalculate the percentage or forget to convert it into decimal form before multiplying. Keep those numbers in check!