Jarvie loves to bike in fact he has always turned down, Ask an Expert

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Jarvie loves to bike. In fact, he has always turned down better paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Because road bikes have higher profit margins, employees receive a 30 percent discount. Employees also normally receive a 20 percent discount on mountain bikes. During the current year, Jarvie bought the following bikes:

Description Retail Price Cost Employee Price

Specialized road bike $7,300 $5,050 $5,110
Rocky Mountain mountain bike $5,550 $4,250 $4,440
Trek road bike $4,100 $3,100 $2,870
Yeti mountain bike $4,800 $4,210 $3,840

What amount of deductions is Bad Dog allowed to claim from these transactions? (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9976936

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