Fig. 1 shows a point-of-sale sign used by an electronics retailer during a weekend trade promotion. A customer buys one wireless speaker and pays immediatel...

Assessment: Commerce 4CM1 | Paper 1 Mock 01 | Written Paper 1 Subject: Commerce - 4CM1

Question 1 Report

Fig. 1 shows a point-of-sale sign used by an electronics retailer during a weekend trade promotion. A customer buys one wireless speaker and pays immediately.

WIRELESS SPEAKER SALEUsual price: $12520% offPay today: extra $5 cash discountNo credit purchases© EAGLE BEACON GLOBAL

(a) Identify the percentage reduction shown on the sign. [1]
(b) Calculate the price after the 20% reduction. Show your working. [2]
(c) Calculate the final amount paid by the customer. Show your working. [3]

Answer Details

(a) The sign shows a 20% reduction [1].

(b) Calculate the 20% discount:

\[20\%\text{ of }\$125=\frac{20}{100}\times\$125=\$25\]

Subtract it from the usual price:

\[\$125-\$25=\$100\]

The sale price is $100 [2].

(c) The price after the sale reduction is $100 [1]. Paying immediately gives a further $5 cash discount:

\[\$100-\$5=\$95\]

The final amount paid is $95 [3]. The $5 is deducted after, not instead of, the 20% reduction.

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