Expert: Lynn Houston - 9/18/2008

Question
PhotoFinish Co. is offering its preferred customers a 25% discount on its most popular product normally listed at $55 each.

What is the net price of each product to PhotoFinish Co.'s preferred customers?

Echo Systems also sells the same product but with a list price of $68.50. What rate of discount should Echo Systems give to match PhotoFinish Co.'s price to its preferred customers?

Answer
Discount would be .25*55 and total price is 55 - .25(55)
Discount = $13.75 and final price is $41.25

For the second part, you want to know Echo's price, minus what discount (x) equals PhotoFinish's price so the eq is going to be
68.5 - x(68.5) = 41.25, so now you just solve for x.  Start by subtracting 68.5 from both sides
-x(68.5) = -27.25, now divide both sides by -68.5, so
x= ~.40 (.3978 rounded), so Echo would have to discount their price ~ 40% to have the same price as PhotoFinish's preferred customer rate.

Let me know if something doesn't make sense.