Trade Discount and Discount Series

A _____________ is the amount by which the retail price of a product is reduced by the manufacturer when it is sold to the reseller or customer.

It is a fee for a service or product before discounts are deducted or sales taxes are added.

It is computed by dividing the trade discount and the original price.

It is the final charge you pay for a product or service after discounts and sales taxes are computed.

Original Price: Php6,500

Trade Discount: Php1,200

Discount Rate: _________?

• 18%

• 19%

• 20%

• 28%

Trade Discount: Php500

Discount rate: 10%

List Price: _________?

• Php 50, 000.00

• Php 500.00

• Php 1,000.00

• Php 5, 000.00

Original Price: Php6,500

Trade Discount: Php1,200

Net Price: ______________?

• Php 7, 700.00

• Php 5, 200.00

• Php 5, 300.00

• Php 5, 000.00

Original Price: Php27,800

Discount rate: 35%

Discount: ___________?

• Php 9, 730.00

• Php 18, 070.00

• Php 37, 530.00

• Php 79, 428.57

Original Price: Php27,800

Discount rate: 35%

Net Price: ___________?

• Php 9, 730.00

• Php 18, 070.00

• Php 37, 530.00

• Php 79, 428.57

Original Price: Php5,000

Discount rate: 25%

Net Price: ___________?

• Php 1, 250.00

• Php 3, 750.00

• Php 6, 250.00

• Php 20, 000.00