arvie 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. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes:

DescriptionRetail PriceCostEmployee PriceSpecialized road bike$7,200$4,900$5,040Rocky Mountain mountain bike5,2003,7504,160Trek road bike3,3002,7602,310Yeti mountain bike3,3002,9002,640

b.What amount of deductions is Bad Dog allowed to claim from these transactions?