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    Trade Discounts - Worksheet

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    Amri Mat Saaid
    The document discusses trade discounts, which are discounts manufacturers offer retailers and wholesalers from the list price of products. It provides examples of calculating trade discounts by taking the list price and multiplying it by the trade discount rate to get the discount amount, then subtracting the discount from the list price to get the net price the retailer/wholesaler pays.

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    Download as PDF, TXT or read online from Scribd

    Trade Discounts - Worksheet

    Uploaded by

    Amri Mat Saaid
    492 views1 page
    The document discusses trade discounts, which are discounts manufacturers offer retailers and wholesalers from the list price of products. It provides examples of calculating trade discounts by taking the list price and multiplying it by the trade discount rate to get the discount amount, then subtracting the discount from the list price to get the net price the retailer/wholesaler pays.

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    The document discusses trade discounts, which are discounts manufacturers offer retailers and wholesalers from the list price of products. It provides examples of calculating trade discounts by taking the list price and multiplying it by the trade discount rate to get the discount amount, then subtracting the discount from the list price to get the net price the retailer/wholesaler pays.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    492 views1 page

    Trade Discounts - Worksheet

    Uploaded by

    Amri Mat Saaid
    The document discusses trade discounts, which are discounts manufacturers offer retailers and wholesalers from the list price of products. It provides examples of calculating trade discounts by taking the list price and multiplying it by the trade discount rate to get the discount amount, then subtracting the discount from the list price to get the net price the retailer/wholesaler pays.

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    468

    Chapter 33

    Master 33-5, Reproducible

    Trade Discounts
    Student Name _______________________________ Date __________________ Period _______________ A trade discount is the way a manufacturer quotes a price to a wholesaler or retailer. The manufacturer offers a trade discount rate, which is a percent such as 20 percent or 40 percent. This trade discount rate is then applied to the list price for the item. The list price times the trade discount rate gives you the trade discount in dollars. Net price is the price that the wholesaler or retailer actually pays for an item, after all discounts are taken. The net price is calculated by subtracting the trade discount from the list price. Answers are rounded to the nearest cent. Trade Discount = List Price x Trade Discount Rate Net Price = List Price Trade Discount 1. Miracle Appliance is a wholesaler of kitchen appliances. You are the purchaser for a home store retailer. Miracle Appliance offers the KJT532 model refrigerator at a list price of $657. Miracle offers your company a trade discount of 25 percent. a. What is the amount of the discount for this refrigerator? _________________________________ b. What net price will you pay for this model refrigerator? _________________________________ 2. ABC Department store purchases a variety of products. In the table below are listed the list prices and trade discount rates for ve products. Calculate the trade discounts and the net prices for each product. Write the results in the proper cell of the table.

    Product 1 2 3 4 5

    List Price ($) 150.00 320.00 400.00 1,025.00 2,500.00

    Trade Discount Rate (%) 20 10 25 15 20

    Trade Discount ($)

    Net Price ($)

    3. Auto Repair, Inc. buys parts from Auto Parts, Inc. In the table below are listed the list prices and trade discount rates for ve parts from Auto Parts. Calculate the trade discounts and the net prices for each product. Write the results in the proper cell of the table.

    Product AB593187 AB593592 AB627846 AB784678 AB983456

    List Price ($) 65.20 83.50 27.64 75.75 108.50

    Trade Discount Rate (%) 30 40 20 25 20

    Trade Discount ($)

    Net Price ($)

    Permission granted to reproduce for educational use only Copyright by Goodheart-Willcox Co., Inc.

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