Ch 3 Trade and Cash Discount

Which of these equations are true ?

(May be more than one correct answer)

• Trade Discount = List Price × Discount Rate

• Trade Discount = Net Price × Discount Rate

• Trade Discount = List Price - Net Price

• Trade Discount = List Price - Discount Rate

To find discount rate...

• Discount rate = (Trade Discount × List Price)× 100

• Discount rate = (Trade Discount /Net Price)× 100

• Discount rate = (Trade Discount /List Price)× 100

The list price of an air-conditioner is BHD200, the net price

BHD170. What is the trade discount?

• BHD 230

• BHD 30

• BHD 370

• BHD 70

Answer explanation

TD = LP - NP

The list price of a sewing machine is BHD200. A manufacturer gives

a 30% discount to all retailers. What is the trade discount?

• BHD 30

• BHD 60

• BHD 200

• BHD 260

Answer explanation

TD= LP * D%

The list price of a sewing machine is BHD200. A manufacturer gives

a 30% discount to all retailers. What is the net price ?

• BHD 170

• BHD 140

• BHD 200

• BHD 100

Answer explanation

TD= LP * D %

NP = LP - TD

The list price of an air-conditioner is BHD200, the net price

BHD170. What is the trade discount rate?

• 15 %

• 30 %

• 85%

• 70%

Answer explanation

TD % = ( LP-NP)/LP *100

A manufacturer gives 10% discount to the first hundred refrigerators and

15% for orders over hundred to all retailers. If the price of each one is BHD 200.

If Al Dana Electronics bought 70 refrigerators.

Calculate the list price for a Dana :

• LP = 20000

• LP = 14000

• LP = 17000

Answer explanation

LP=200 *70 =14000

عدد المنتجات * السعر

A manufacturer gives 10% discount to the first hundred refrigerators and

15% for orders over hundred to all retailers. If the price of each one is BHD 200.

Calculate the trade discount and net price for the following:

a- Al Dana Electronics bought 70 refrigerators

• TD= 3000

  NP= 11000

• TD= 2100

  NP= 11900

• TD = 1400 NP= 12600

Answer explanation

TD = 14000*10=1400

NP = 14000-1400=12600

A manufacturer gives 10% discount to the first hundred refrigerators and

15% for orders over hundred to all retailers. If the price of each one is BHD 200.

Calculate the list price for the following:

a- Orange Electronics bought 170 refrigerators.

• 30000

• 25000

• 34000

Answer explanation

LP = 170*200=34000

A manufacturer gives 10% discount to the first hundred refrigerators and

15% for orders over hundred to all retailers. If the price of each one is BHD 200.

a- Orange Electronics bought 170 refrigerators.

Calculate the trade discount and net price for the following:

• TD= 4100

  NP= 29900

• TD= 2100

  NP= 11900

• TD = 1400 NP= 12600

Answer explanation

TD1=100*200*10%=2000

TD2= 70*200*15%= 2100

Total TD= 2000+2100=4100

NP = LP -TD = 34000-4100=29900