QUESTION 3 Fatin is the owner of Radar PC & Printers. She purchased 10 printers and 20 toners at RM500
and RM150 each. The invoice as dated 14 December 2020. She was offered a series trade
discount of 12%, 8% and cash discount term 7/10, 5/20 and n/30. Fatin paid the invoice on 30
December 2020.
a) Find the amount paid on 30 Dec 2020
(3 marks)
b) Find the net price of a printer
(1.5 marks)
c) Find the net price of a toner
(1.5 marks)
d) Find the total selling price if the owner wanted a net profit of 25% based on selling price
and operating expenses are 15% based on cost.
(3 marks)
e) Find the selling price of a printer and a toner
(3 marks)
f) Fatin managed to sell 8 printers and 15 toners at price in (e). The remainder was sold at
a markdown of 15% Do Fatin making any profits?
(5 marks
END OF QUESTION

a) 6,730.40

b) 418

c) 131.10

Explanation:

price after trade discount:

printer = 500 x (1 - 12%) = 440

toner = 150 x (1 - 8%) = 138

since the invoice was paid during the discount period, the total amount paid on December 30 was [(440 x 10) + (20 x 138)] x (1 - 5%) = 6,730.40

net price per unit:

printer = 440 x 0.95 = 418

toner = 138 x 0.95 = 131.10

d) total cost including operating expenses = (6,730.40 x 1.15) = 7,739.96

selling price = 7,739.96 / 0.75 = 10,319.95 ≈ 10,320

e) (printer + toner) x 1.15 = (418 + 131.10) x 1.15 = 631.465

selling price of 1 printer and 1 toner = 631.465 / 0.75 = 841.95 ≈ 842

f) yes, a profit was made since the original selling price was calculated assuming a 25% net profit, and the discount was only 15%

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