a wholesaler supplies 60 books while he was ordered to send 50 books by a retailer. a trade discount of 10 percent is also allowed. what is the net value of the discount to the retailer?
To calculate the net value of the discount to the retailer, we need to first determine the total amount of money the retailer would have spent if there were no discount.
Step 1: Calculate the total cost without the discount:
The retailer ordered 50 books, and the wholesaler supplies 60 books. However, the retailer is only purchasing 50 books, so we need to find the cost of 50 books based on the price of each book.
Step 2: Determine the price of each book:
Since the question doesn't provide information about the price per book, let's assume each book costs $X.
Step 3: Calculate the total cost without the discount:
The total cost without the discount is given by:
Total Cost without discount = Number of books * Price per book
Total Cost without discount = 50 * X
Step 4: Calculate the net discount value:
The net discount value can be calculated by applying the 10% trade discount to the total cost without the discount.
Step 5: Calculate the discount amount:
To calculate the discount amount, multiply the total cost without the discount by the discount rate:
Discount amount = Total Cost without discount * Discount rate
Discount amount = 50 * X * 0.10
Therefore, the net value of the discount to the retailer is 50 * X * 0.10.