A retailer is offered a regular discount of 25%, a further discount of 7.5% if she places an order exceeding $10,000 (at list prices), and another 5% promotional allowance (discount) for participating in a joint promotion with the distributor.
a. If the retailer is eligible for all three trade discounts, what will be the net price of an order totalling $11,500?
b. What is the dollar amount of the saving from the quantity discount (assumingthat she does not participate in the joint promotion)?
c. What is the dollar amount of the promotional allowance?