An owner of a laundry shop received an invoice for purchasing 200 bottles of liquid detergent at RM15 each, and 300 bottles of fabric softener at RM8 each. The invoice dated on 6th August 2010. He was offered trade discount 10% and 8%, with cash discount 10/10, 5/20, n/30. The owner paid the invoice on 21th August 2010.
i) Find the amount of payment on 21th August 2010.
ii) Calculate the net price for a bottle of liquid detergent.
iii) Calculate the net price for a bottle of fabric softener.
iv) Find the total markup amount if the owner wanted a 10% net profit based on cost of all items and 15% operating expenses based on cost of all items.
v) Find the selling price of a bottle of liquid detergent.
vi) Find the selling price of a bottle of fabric softener.
*thankyousomuch!*
Sure! Let's go through each question one by one:
i) To find the amount of payment on 21st August 2010, we need to calculate the total amount of the invoice after considering all the discounts.
First, let's calculate the total cost of 200 bottles of liquid detergent:
Total cost of liquid detergent = Number of bottles * Cost per bottle
= 200 * RM15
= RM3000
Next, let's calculate the total cost of 300 bottles of fabric softener:
Total cost of fabric softener = Number of bottles * Cost per bottle
= 300 * RM8
= RM2400
Now let's calculate the total invoice amount:
Total invoice amount = Total cost of liquid detergent + Total cost of fabric softener
= RM3000 + RM2400
= RM5400
Next, let's consider the trade discount. The owner was offered a 10% trade discount on the liquid detergent and an 8% trade discount on the fabric softener.
Trade discount on liquid detergent = Total cost of liquid detergent * Trade discount rate
= RM3000 * 10% (0.1)
= RM300
Trade discount on fabric softener = Total cost of fabric softener * Trade discount rate
= RM2400 * 8% (0.08)
= RM192
Now let's deduct the trade discounts from the total invoice amount:
Total invoice amount after trade discount = Total invoice amount - Trade discount on liquid detergent - Trade discount on fabric softener
= RM5400 - RM300 - RM192
= RM4908
Finally, let's consider the cash discount. The owner was offered three cash discounts options: 10/10, 5/20, and n/30.
10/10 cash discount means a 10% discount if paid within 10 days. So, if the owner pays within 10 days from the invoice date, the cash discount will be applied. In this case, the owner paid on 21st Aug 2010, which is within 10 days from the invoice date (6th Aug 2010). So the cash discount is applicable.
Cash discount = Total invoice amount after trade discount * Cash discount rate
= RM4908 * 10% (0.1)
= RM490.80
Now, let's calculate the payment amount on 21st Aug 2010:
Payment amount = Total invoice amount after trade discount - Cash discount
= RM4908 - RM490.80
= RM4417.20
Therefore, the amount of payment on 21st August 2010 is RM4417.20.
ii) To calculate the net price for a bottle of liquid detergent, we need to divide the total cost of liquid detergent (after trade discount) by the number of bottles.
Net price per bottle of liquid detergent = Total cost of liquid detergent after trade discount / Number of bottles
= RM3000 - RM300 (trade discount) / 200
= RM2700 / 200
= RM13.50
Therefore, the net price for a bottle of liquid detergent is RM13.50.
iii) To calculate the net price for a bottle of fabric softener, we follow the same steps as in ii):
Net price per bottle of fabric softener = Total cost of fabric softener after trade discount / Number of bottles
= RM2400 - RM192 (trade discount) / 300
= RM2208 / 300
= RM7.36
Therefore, the net price for a bottle of fabric softener is RM7.36.
iv) To find the total markup amount, we need to calculate the total cost of all items and then calculate the net profit and operating expenses based on the cost of all items.
Total cost of all items = Total cost of liquid detergent + Total cost of fabric softener
= RM3000 + RM2400
= RM5400
Net profit based on cost of all items = 10% of the total cost of all items
= 10% * RM5400
= RM540
Operating expenses based on cost of all items = 15% of the total cost of all items
= 15% * RM5400
= RM810
Total markup amount = Net profit + Operating expenses
= RM540 + RM810
= RM1350
Therefore, the total markup amount is RM1350.
v) To find the selling price of a bottle of liquid detergent, we need to add the total cost per bottle (including markup) to the net price per bottle.
Selling price per bottle of liquid detergent = Net price per bottle + Markup per bottle
= RM13.50 + (10% of RM15)
= RM13.50 + RM1.50
= RM15.00
Therefore, the selling price of a bottle of liquid detergent is RM15.00.
vi) To find the selling price of a bottle of fabric softener, we follow the same steps as in v):
Selling price per bottle of fabric softener = Net price per bottle + Markup per bottle
= RM7.36 + (10% of RM8)
= RM7.36 + RM0.80
= RM8.16
Therefore, the selling price of a bottle of fabric softener is RM8.16.
I hope this helps! Is there anything else you would like to know?