Kinta Trading sells an item for RM90 less 25% and 10%. Softee Trading sells the same item for RM100 less 30%.
(a) Find the net prices of the item for the two companies.
(b) What additional discount percentage must be offered by the company that sells at a higher net price in order to meet the competitors price?
90 * .75 * .90 = 60.75
90 * .70 = 63.00
so, 63 * what = 60.75?
To find the net prices of the item for Kinta Trading and Softee Trading, we need to calculate the discounted price for each company.
(a) Net prices for Kinta Trading and Softee Trading:
1. Kinta Trading: The item is sold for RM90 less 25% and 10%.
Step 1: Subtract 25% of the original price from the original price.
Net price after 25% discount = Original price - (25% of original price)
Step 2: Subtract 10% of the net price from step 1 from the net price in step 1.
Net price after additional 10% discount = Net price from step 1 - (10% of net price from step 1)
2. Softee Trading: The item is sold for RM100 less 30%.
Step 1: Subtract 30% of the original price from the original price.
Net price after 30% discount = Original price - (30% of original price)
(b) To find the additional discount percentage that the company selling at a higher net price must offer to meet the competitor's price, we will compare the net prices of the two companies and calculate the difference. Then, we will divide the difference by the higher net price and multiply by 100 to get the percentage.
Let's calculate the net prices for both companies:
(a) Net prices:
1. Kinta Trading:
Step 1: Net price after 25% discount = RM90 - (25% of RM90)
= RM90 - (0.25 * RM90)
= RM90 - RM22.50
= RM67.50
Step 2: Net price after additional 10% discount = RM67.50 - (10% of RM67.50)
= RM67.50 - (0.10 * RM67.50)
= RM67.50 - RM6.75
= RM60.75
2. Softee Trading:
Step 1: Net price after 30% discount = RM100 - (30% of RM100)
= RM100 - (0.30 * RM100)
= RM100 - RM30
= RM70
Therefore, the net price for Kinta Trading is RM60.75 and the net price for Softee Trading is RM70.
(b) Additional discount percentage:
To find the additional discount percentage that Kinta Trading must offer to meet Softee Trading's price:
Step 1: Calculate the difference between the net prices.
Difference = Softee Trading net price - Kinta Trading net price
= RM70 - RM60.75
= RM9.25
Step 2: Divide the difference by the Softee Trading net price and multiply by 100 to get the percentage.
Additional discount percentage = (Difference / Softee Trading net price) * 100
= (RM9.25 / RM70) * 100
≈ 13.21%
Therefore, Kinta Trading must offer an additional discount of approximately 13.21% to meet Softee Trading's price.