The Garage Owner Receives a 20% Discount for Parts

question 9

Multiple Choice

$\begin{array}{lcl}\text { Item } & \text { Quantity } & \text { Cost } \\5 / 8 \text {-inch hose } & 30 \text { inches } & \$ 1.25 \text { per foot } \\3 / 4 \text {-inch hose } & 24 \text { inches } & \$ 1.35 \text { per foot } \\5 / 8 \text {-inch hose clamps } & 2 & \$ 0.84 \text { each } \\3 / 4 \text {-inch hose clamps } & 2 & \$ 0.84 \text { each } \\\text { Thermostat with gasket } & 1 & \$ 5.65 \text { each } \\\text { Pressure cap } & 1 & \$ 4.50 \text { each } \\\text { Upper hose } & 1 & \$ 11.44 \text { each } \\\text { Lower hose } & 1 & \$ 16.53 \text { each } \\\text { Hose clamps } & 4 & \$ 0.98 \text { each }\\\\\text { Labor charges are as follows: }\\\\ \text { Remove, clean, and replace radiator } &&\$ 39.50 \\ \text { Reverse flush block } &&\$ 20.00 \\ \text { Replace heater hoses } &&\$ 10.00 \\ \text { Replace thermostat and cap } &&\mathrm{~N} / \mathrm{C}\end{array}$ The garage owner receives a 20% discount for parts. How much is paid for the parts for this job?

• A) $21.88
• B) $34.57
• C) $37.47
• D) $40.98

---

Definitions:

Pretax Income

Pretax income is a company's earnings before tax, calculated as revenue minus expenses, excluding tax expenses, serving as an indicator of financial performance.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Understated

A term describing financial statements or figures that are reported at amounts lower than their actual or true values.

Net Income

A company's overall earnings after deducting all expenses and taxes from the gross revenue.