A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher?

Question

Business

Beckett Henson

2 October, 06:19

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher?

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Tiffany Vaughan · Answer 1

Answer: $410 per dishwasher

Explanation: From the question above, 15 new dishwashers were bought at a list price of $550 each.

it is eligible for a $150-per-unit quantity discount because it is buying more than 10 units at once.

Financing charges total $20 per unit.

The company gets $10 per dishwasher for the 15 dishwashers traded in.

What is the final price the company will pay for each dishwasher?

Initial cost per unit is $550

Less discount of $150

Less trade in discount of $10

Add finance charge of $20

Cost per dish washer = $550 - $150 - $10 + $20 = $410.