The 55% Trade Discount on an Item Is Equal to $509

question 207

Multiple Choice

The 55% trade discount on an item is equal to $509. What is the net price?

• A) $355
• B) $488
• C) $667
• D) $789
• E) $416

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Definitions:

Price Per Unit

A measure that indicates the cost of a single unit of a product or service.

Network Effects

The phenomenon whereby a product or service gains additional value as more people use it, enhancing its appeal and utility to new and existing users.

Economies Of Scale

Cost advantages that a business obtains due to expansion, seen in the form of reduced costs per unit as output increases.

Profit-Maximizing

The method or approach of adapting manufacturing and selling activities to secure the maximum potential profit.