A retailer returned 2475 defective items to the manufacturer

A retailer returned 2,475 defective items to the manufacturer and received a credit for the retail price of $0.76 or 76a¢ per item less a discount rate of by the retailer? The credit received by the retailer is S (Round to the nearest cent as needed.) ofthe retail price. What was the amount of the credit recei ved

Solution

Credit received by the retailer is $1,881.50

Working:

Total sales revenue of the lots is $485,700

Retaile price 76 2/3 c or 76.67c
Discoutn rate 6/7
Discount amount = (6/7)% of 76.67c
	=0.85 % of 76.67c
	=0.65c
Net credit received = 76.67c - 0.65c =76.02c
Items returned = 2,475
Total discount = 2,475 X 76.02c = 188,150c = $1,881.50