A wholesaler listed a food additive for $50

Accounting Aug 15, 2020

A wholesaler listed a food additive for $50.00 per kg. Last winter, he offered 19.00% and 11.00% discounts to a retailer. Round your answer to 2 decimal places.

a) calculate the net price to the retailer

b) Calculate the single equivalent discount rate

Expert Solution

1.)

Net price to Retailer = Gross Price * (1 - First Discount) * (1 - Second Discount)

Net price to Retailer = $50 * (1 - 0.19) * (1 - 0.11)

Net price to Retailer = $36.045

2.)

Single Equivalent discount rate = 1 - (1 - First Discount) * (1 - Second Discount)

Single Equivalent discount rate = 1 - (1 - 0.19) * (1 - 0.11)

Single Equivalent discount rate = 27.91%

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