Concept explainers
Series Discount This is a continuation of Exercise 11. Sometimes manufacturers give more than one discount instead of a single trade discount – for example, in trading with large-volume retailers. Such a series discount is quoted as a sequence of discounts, taken one after another. Suppose a manufacturer normally gives a trade discount of
a. Suppose an item has a suggested retail price of
b. Suppose an item has suggested retail price of
c. What single trade discount would give the same cost price as a series of
d. Explain why we could have calculated the same answer as in part b by multiplying
Trade Discount Often retailers sell merchandise at a suggested retail price determined by the manufacturer. The trade discount is the percentage discount given to the retailer by the manufacturer. The resulting price is the retailers’ net cost and so is called the cost price. For example, if the suggested retail price is
a. If an item has a suggested retail price of
b. If item has a cost price of
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FUNCTIONS AND CHANGE COMBO
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