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Multiple Choice
If a company's sales records show that 120 customers purchased burritos at \$8 each, and the company offered a \$1 discount per burrito to all burrito buyers, what is the total net sales revenue from burritos?
A
\$960
B
\$840
C
\$1,000
D
\$120
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Verified step by step guidance
1
Step 1: Identify the number of burritos sold. The problem states that 120 customers purchased burritos.
Step 2: Determine the original price per burrito. Each burrito was priced at \$8.
Step 3: Account for the discount offered. The company provided a \$1 discount per burrito, reducing the effective price per burrito to \$7 (\$8 - \$1).
Step 4: Calculate the total net sales revenue by multiplying the effective price per burrito (\$7) by the number of burritos sold (120). Use the formula:
Step 5: Verify the calculation and ensure the result aligns with the concept of net sales revenue, which accounts for discounts applied to the original price.