Answer:
The highest discount offered by Roma Company.
Step-by-step explanation:
Let the cosmetics marked price be 100.
It is given that Walgreens is offered a chain discount on cosmetics from Libby Corp. of 8%, 5%, 2%.
The selling price of cosmetics after chain discount is
[tex]100(1-\frac{8}{100})(1-\frac{5}{100})(1-\frac{2}{100})=85.652[/tex]
Discount = Marked price - Selling price
[tex]Discount=100-85.652=14.348[/tex]
The total discount percentage in Walgreens is 14.348%.
It is given that Roma Company is offered a chain discount on cosmetics of 7%, 6%, 4%.
The selling price of cosmetics after chain discount is
[tex]100(1-\frac{7}{100})(1-\frac{6}{100})(1-\frac{4}{100})=83.9232[/tex]
Discount = Marked price - Selling price
[tex]Discount=100-83.9232=16.0768[/tex]
The total discount percentage in Roma Company is 16.0768%.
Since 16.0768% > 14.348%, therefore the highest discount offered by Roma Company.
