What is the net price factor for trade discounts of 25/15/10? (Points : 2.5)
To calculate the net price factor for trade discounts of 25/15/10, you need to follow a specific formula. The formula is:
Net Price Factor = (1 - Discount 1)(1 - Discount 2)(1 - Discount 3)
In this case, the trade discounts are 25/15/10, which means that there are three discounts applied successively.
Let's calculate the net price factor step by step.
First, convert each discount into a decimal by dividing them by 100:
Discount 1 = 25/100 = 0.25
Discount 2 = 15/100 = 0.15
Discount 3 = 10/100 = 0.10
Now, substitute these values into the formula:
Net Price Factor = (1 - 0.25)(1 - 0.15)(1 - 0.10)
Calculate each part inside the parentheses:
Net Price Factor = (0.75)(0.85)(0.90)
Multiply the three values together:
Net Price Factor = 0.57375
Therefore, the net price factor for trade discounts of 25/15/10 is 0.57375.