The list price of a set of fine china is $345.70 and the trade discount is 55%. Find the net cost.
I did $345.70 *.55= 190.14 that gives me the trade discount. i'm confused on how i then find the net cost, do i subtract 190.14 from 345.70 to get the net cost?
The net cost is difference between the list price and the trade discount. In other words, you are on the right path :)
so would i be correct if i got $155.56 as an answer, Lucina?
Yes, you would be correct.
Okay thank you lucina:] would you mine checking this one...
A watch with a list price of $889.00 is sold by a wholesaler at a net cost of $545.75. Find the single trade discount rate being offered. round to the nearest tenth of a percent
889.00*61.4? since trade discount equals list price * trade discount percentage? 54.58 would be the discount am right
To find the net cost, you need to subtract the trade discount from the list price. So, in this case, you would subtract the calculated trade discount of $190.14 from the list price of $345.70.
Net cost = List price - Trade discount
Net cost = $345.70 - $190.14
Calculating this, you have:
Net cost = $155.56
Therefore, the net cost of the set of fine china, after applying a 55% trade discount, is $155.56.