A Flower Shop Buys Roses with a List Price of $1,500

question 152

Multiple Choice

A flower shop buys roses with a list price of $1,500. If the wholesaler offers trade discounts of $$30 / 21 / 10 \frac { 3 } { 4 }$$ , find the trade discount amount to the nearest penny.

• A) $759.67
• B) $1,200.01
• C) $912.25
• D) $480.02

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Definitions:

Variable Expenses

Costs that change in proportion to the level of activity or volume of production.

Sales

The transactions involving the exchange of goods or services for payment.

Net Operating Income

A measure of profitability that calculates the difference between a company's operating revenue and its operating expenses, excluding taxes and interest.

Fixed Expenses

Fixed expenses are costs that do not change with the level of production or sales, such as rent or salaries.