Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

Practice this question and more.

Merchandise has a list price of $250 and a trade discount of 30%. What is the purchase price?

A. $125
B. $75
C. $325
D. $175

The correct answer is: D. $175

To determine the purchase price after applying a trade discount to the list price, you first need to calculate the amount of the trade discount. The trade discount is applied to the list price, which in this case is $250 with a discount of 30%. First, calculate the trade discount amount: 30% of $250 is calculated as: \[ 0.30 \times 250 = 75 \] Now, subtract the trade discount from the list price to find the purchase price: \[ 250 - 75 = 175 \] Thus, the purchase price, after applying the trade discount, is $175. This amount reflects the price the buyer will actually pay for the merchandise after the discount has been applied. It is essential in business calculations to accurately determine discounts to manage budgets and pricing strategies effectively.