What discount did the general manager apply to the entire lot?

What discount did the general manager apply to the entire lot?

• A. 10 percent
• B. $25,000
• C. No discount
• D. $5,000

Answer: (B)

When a discount is applied to the entire lot, it can be either a percentage of the total or a fixed dollar amount. In this scenario, the deal described an exact lump-sum reduction of twenty-five thousand dollars handed to the whole lot. That fixed dollar amount is why the discount is identified as twenty-five thousand dollars—the price drop is the same amount regardless of how the individual items add up. A percentage would vary with the total price, and no discount would mean no reduction at all, which doesn’t match the described deal.

When a discount is applied to the entire lot, it can be either a percentage of the total or a fixed dollar amount. In this scenario, the deal described an exact lump-sum reduction of twenty-five thousand dollars handed to the whole lot. That fixed dollar amount is why the discount is identified as twenty-five thousand dollars—the price drop is the same amount regardless of how the individual items add up. A percentage would vary with the total price, and no discount would mean no reduction at all, which doesn’t match the described deal.