5.1 trade discounts

5.1 trade discounts - 5.1 Trade Discounts MERCHANDISING...

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5.1 Trade Discounts
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A SIMPLE MERCHANDISING CHAIN Manufacturer Wholesaler Retailer Consumer MERCHANDISING CHAIN: A product’s journey from being raw materials to a finished product purchased by a consumer
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200 30% = 0.30 ? An item at $200 is discounted by 30%. What is the discount amount? D = L x d = 200 x 0.30 = $60 Discount Amount ($) = List Price ($) x discount rate (%) D = L x d L = d = D =
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Net Price ($) = List Price ($) Discount Amount ($) N = L – D Net Price ($) = List Price ($) x [1 – discount rate (%) N = L(1 – d) FINDING NET PRICE GIVEN DISCOUNT AMOUNT GIVEN DISCOUNT RATE
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? 350 75 Find the net price of an item listed at $350 that is discounted $75. N = L = D = N = L – D = 350 – 75 = $275 ? 525 25% = 0.25 Find the net price of an item listed at $525 that is discounted 25%. N = L = d = N = L(1 – d) = 525(1 – 0.25) = 525(0.75) = $393.75
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An item is listed at $200 less discounts of 50%, 30%, 20%. Find the net price. N = L (1 - d1) (1 - d2) (1 - d3)…(1 – dn)
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5.1 trade discounts - 5.1 Trade Discounts MERCHANDISING...

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