In Addition to the Basic Trade Discount of 20%, an Outboard

question 104

Short Answer

In addition to the basic trade discount of 20%, an outboard motor manufacturer gives a boat dealer an additional discount of 12.5% for providing follow-up warranty service, and a 5% discount for cooperative advertising and boat-show promotions.
a) After the basic trade discount, what further price reduction (in dollars) does the 12.5% discount represent on a $1,000 list price motor?
b) After the first two discounts, what price reduction does the 5% discount give on the $1,000 motor?

---

Definitions:

Driving While Impaired

The act of operating a vehicle under the influence of alcohol, drugs, or other substances that impair cognitive and motor skills.

Occupiers' Liability Act

Legislation that defines the duty of care owed by individuals or entities that control premises towards those who enter them.

Legal Duty

An obligation arising from law that requires an individual or entity to conform to a standard of conduct.

Prudent Person

An individual who exercises caution and good judgment when making decisions, often used as a standard for legal and financial decisions.