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Juan's Engineering buys circuit boards with a list price of \( \$ 32,000 \). If the supplier extends trade discounts of \( 42 / 32 / 12 \), what is the trade discount amount?

Ask by Black Haynes. in the United States
Jan 22,2025

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Answer

The total trade discount is \$20,893.70.

Solution

To determine the trade discount amount for Juan's Engineering, we'll apply the successive trade discounts of \(42\%\), \(32\%\), and \(12\%\) to the list price of \$32,000. Here's a step-by-step breakdown: 1. **First Discount (42%)**: \[ \text{Discount} = 0.42 \times 32,\!000 = \$13,\!440 \] \[ \text{Price after first discount} = 32,\!000 - 13,\!440 = \$18,\!560 \] 2. **Second Discount (32%)**: \[ \text{Discount} = 0.32 \times 18,\!560 = \$5,\!939.20 \] \[ \text{Price after second discount} = 18,\!560 - 5,\!939.20 = \$12,\!620.80 \] 3. **Third Discount (12%)**: \[ \text{Discount} = 0.12 \times 12,\!620.80 = \$1,\!514.50 \] \[ \text{Price after third discount} = 12,\!620.80 - 1,\!514.50 = \$11,\!106.30 \] 4. **Total Trade Discount**: \[ \text{Total Trade Discount} = \text{List Price} - \text{Final Price} = 32,\!000 - 11,\!106.30 = \$20,\!893.70 \] **Final Answer:** The total trade discount amount is **\$20,893.70**.

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To calculate the trade discount amount, you can work through the discounts step by step. First, apply the 42% discount on the list price: \[ \$32,000 \times 0.42 = \$13,440 \] Subtract this from the list price: \[ \$32,000 - \$13,440 = \$18,560 \] Next, apply the 32% discount on the new amount: \[ \$18,560 \times 0.32 = \$5,939.20 \] Subtract this from the adjusted price: \[ \$18,560 - \$5,939.20 = \$12,620.80 \] Now, apply the final 12% discount: \[ \$12,620.80 \times 0.12 = \$1,514.50 \] Subtract this from the latest adjusted price: \[ \$12,620.80 - \$1,514.50 = \$11,106.30 \] The total trade discount amount therefore is: \[ \$13,440 + \$5,939.20 + \$1,514.50 = \$20,893.70 \] So, the trade discount amount is \( \$20,893.70 \).

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