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14 December, 12:00

Scale Co. offers a promotional coupon with every product it sells. The coupon gives the Scale Co. customer an opportunity to buy an electric drill that normally sells for $50 for only $30 (a 40% discount). The coupon must be redeemed within one year of the purchase. Scale Co. estimates that 80% of customers will take advantage of the coupon. What is the stand-alone selling price of the coupon

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  1. 14 December, 12:37
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    Question is incomplete, Here are the Options:

    a. $20

    b. $30

    c. $50

    d. $16 is Correct

    Explanation:

    Since Scale Co. estimates just 80 percent of the coupons to be used.

    They calculates a coupon's stand-alone selling price at $20 (40 percent of 50) = 80 percent = $16 ($20, the discount number, is the commodity right in which a fraction of the selling price must be allocated).
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