Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer...


Suppose a certain car manufacturer's incentive program designed to reduce<br>inventory of certain low-selling models offers a $8,000 extra dealer incentive<br>for each of these vehicles that the dealer moved into its rental or service<br>fleets.<br>As the accountant for a dealership with a number of these vehicles left in<br>stock, your manager has asked you to calculate certain invoice figures. The<br>normal trade discount from this car manufacturer is 19%. If the average<br>sticker price (list price) of these remaining vehicles at your dealership is<br>$24,500, calculate the following.<br>(a) What is the amount of the trade discount, including the incentive (in $)?<br>$<br>(b) What is the trade discount rate (in percent)? Round to the nearest tenth<br>of a percent.<br>%<br>(c) What is the net price (invoice price) to your dealership (in $)?<br>$<br>(d) If the cars were then sold from the fleets at $1,000 over

Extracted text: Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 19%. If the average sticker price (list price) of these remaining vehicles at your dealership is $24,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? $ (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. % (c) What is the net price (invoice price) to your dealership (in $)? $ (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a percent. % (e) Although these incentive prices reflect extraordinary discounts to the consumer, what other factors should a consumer consider before purchasing a "discontinued" brand of vehicle? (Select all that apply.) net worth of the car dealership O total number of vehicles manufactured this year availability of parts and service O vehicles may be more difficult to resell vehicle will be worth less than comparable models that are not discontinued

Jun 07, 2022
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