What is the net price factor of a 25/15 series of trade discounts? (2pts)
What is the net price factor of a 35/10/15 series of discounts? (2pts)
Legacy Designs places an order for furniture listing for $90500 less trade discounts of 25/20.
What is the net price factor? (1pt)
What is the net price order? (1pt)
Audio Giant received an order of Sirius XM satellite radios listing for $9500 with trade discounts of 25/13/8.
What is the net price factor? (1pt)
What is the single equivalent discount? (1pt)
What is the amount of trade discount? (1pt)
What is the net price of the order? (1pt)
To find the net price factor of a series of trade discounts, you need to multiply the complement of each discount rate.
For the first question, a 25/15 series of discounts means that you have two discounts: 25% and 15%. The complement of a discount rate is obtained by subtracting the discount percentage from 100%. So the complements of 25% and 15% are 75% (100% - 25%) and 85% (100% - 15%) respectively. To find the net price factor, multiply these two complements together: 0.75 * 0.85 = 0.6375.
For the second question, a 35/10/15 series of discounts means that you have three discounts: 35%, 10%, and 15%. The complements of these discount rates are 65% (100% - 35%), 90% (100% - 10%), and 85% (100% - 15%) respectively. Multiply these complements together: 0.65 * 0.90 * 0.85 = 0.49725.
Moving on to the third question, to calculate the net price factor for an order with trade discounts of 25/20, follow the same process. The complement of 25% is 75% and the complement of 20% is 80%. Multiply these complements: 0.75 * 0.80 = 0.6. So the net price factor is 0.6.
To find the net price order for Legacy Designs, multiply the net price factor (0.6) by the listed price ($90,500): 0.6 * $90,500 = $54,300.
For the next question, an order received by Audio Giant has trade discounts of 25/13/8. To find the net price factor, multiply the complements of these discounts: 75% * 87% * 92% = 0.5823.
To calculate the single equivalent discount, subtract the net price factor from 1 (or 100%): 1 - 0.5823 = 0.4177. This means that the single equivalent discount is 41.77%.
To find the amount of trade discount, multiply the single equivalent discount (0.4177) by the listed price ($9,500): 0.4177 * $9,500 = $3,963.15.
Finally, to calculate the net price of the order, multiply the amount of trade discount ($3,963.15) by the listed price ($9,500), then subtract it from the listed price: $9,500 - $3,963.15 = $5,536.85.