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Use the following to answer questions 1 - 5 For the next few weeks RAD Ad Agency is offering a 15% trade discount when provid

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Answer #1

1) $25500

30000 x (1 - 0.15) = 25500

2) $29750

35000 x (1 - 0.15) = 29750

3) $29155

29750 x (1 - 0.02) = 29155

4) $102250

25500 + 29750 + 25000 + 22000 = 102250

5) $101155

Net Service Revenue = Service revenue - Discounts

102250 - 595 - 500 = 101155

*Discount to Customer B = 29750 x 2% = 595

Discount to Customer C = 25000 x 2% = 500

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