254 trade discount series 11/10/11 What is the trade discount and what is the net price of the kennel?
To calculate the trade discount and the net price of the kennel, we need to understand what a trade discount is.
A trade discount is a reduction in the price of a product or service that is given to businesses or individuals purchasing goods in large quantities or on a regular basis. It is usually expressed as a percentage of the list price or the published price. Trade discounts are used to encourage bulk purchases or build loyalty with certain customers.
In your case, the trade discount is expressed as "11/10/11." This notation typically represents a series of trade discounts. Let's break it down:
The first number (11) represents the list price or the published price of the kennel.
The second number (10) represents the trade discount percentage.
The third number (11) represents the next list price after applying the discount.
To calculate the trade discount, we subtract the discount percentage (10%) from 100%:
100% - 10% = 90%
Now, we can calculate the net price (the price after the discount) by multiplying the list price by the discount percentage:
Net price = List price * Discount percentage/100
For example, if the list price of the kennel is $254:
Net price = $254 * 90/100
Net price = $228.60
Therefore, the net price of the kennel, after applying the trade discount of 10%, is $228.60.