John receives an invoice for the purchase of 40 batteries for 𝑅𝑀 8,440 on 31 March
2019. Trade discounts are 5 % and 3 % and the cash discount terms
are 8/10, 5/30, 𝑛/60. He pays the invoice on 19 April 2019. He plans to sell the
batteries by allowing 10 % of the cost for operating expenses and 28 % of the selling
price for net profit.
Calculate the payment on 19 April 2019.
ii. Determine the selling price for each battery.
eighteen months ago, a sum money of money was invested. Now the investment is worth RM 10 900. If the investment is extended for another 20 months, it will become RM 11 900. Find the original and simple interest rate that was offered
To calculate the payment on April 19, 2019, we need to consider the trade discounts, cash discounts, and the total invoice amount.
1. Calculate Trade Discounts:
First, find the trade discount for each discount rate:
Trade discount 1 = 5% of the total invoice amount (8,440 RM)
Trade discount 2 = 3% of the remaining amount after applying Trade discount 1
2. Calculate Cash Discount:
Next, calculate the cash discount based on the cash discount terms:
Cash discount 1 = 8% of the remaining amount after applying Trade discount 2
Cash discount 2 = 5% of the remaining amount after applying Cash discount 1
3. Calculate Payment:
Finally, subtract both trade discounts and cash discounts, and the remaining amount is the payment on April 19, 2019.
Now let's go through the calculations step by step:
1. Calculate Trade Discounts:
Trade discount 1 = 5/100 * 8,440 RM
Trade discount 2 = 3/100 * (8,440 RM - Trade discount 1)
2. Calculate Cash Discount:
Cash discount 1 = 8/10 * Trade discount 2
Cash discount 2 = 5/30 * (Trade discount 2 - Cash discount 1)
3. Calculate Payment:
Payment = 8,440 RM - Trade discount 1 - Trade discount 2 - Cash discount 1 - Cash discount 2
Now let's calculate:
1. Calculate Trade Discounts:
Trade discount 1 = 5/100 * 8,440 RM = 0.05 * 8,440 RM = 422 RM
Trade discount 2 = 3/100 * (8,440 RM - 422 RM) = 0.03 * 8,018 RM = 240.54 RM
2. Calculate Cash Discount:
Cash discount 1 = 8/10 * 240.54 RM = 0.8 * 240.54 RM = 192.43 RM
Cash discount 2 = 5/30 * (240.54 RM - 192.43 RM) = 0.1667 * 48.11 RM = 8.02 RM (rounded to two decimal places)
3. Calculate Payment:
Payment = 8,440 RM - 422 RM - 240.54 RM - 192.43 RM - 8.02 RM = 7,576.01 RM (rounded to two decimal places)
Therefore, the payment made on April 19, 2019, is 7,576.01 RM.
ii. To determine the selling price for each battery, we need to factor in the operating expenses and net profit percentages mentioned.
1. Calculate the cost per battery:
Cost per battery = Total invoice amount / Number of batteries
Cost per battery = 8,440 RM / 40 batteries
2. Deduct the operating expenses:
Operating expenses = Cost per battery * 10 / 100
3. Add the net profit:
Net profit = Cost per battery * 28 / 100
4. Calculate the selling price per battery:
Selling price per battery = Cost per battery + Operating expenses + Net profit
Now let's calculate:
1. Calculate the cost per battery:
Cost per battery = 8,440 RM / 40 batteries = 211 RM
2. Deduct the operating expenses:
Operating expenses = 211 RM * 10 / 100 = 21.1 RM
3. Add the net profit:
Net profit = 211 RM * 28 / 100 = 59.08 RM (rounded to two decimal places)
4. Calculate the selling price per battery:
Selling price per battery = 211 RM + 21.1 RM + 59.08 RM = 291.18 RM (rounded to two decimal places)
Therefore, the selling price for each battery is 291.18 RM.