What is the net price factor for trade discounts of 25/15/10?
To calculate the net price factor for trade discounts, you need to follow a specific formula. The trade discounts are given in the format of "25/15/10," which means there are three successive discounts of 25%, 15%, and 10%.
To find the net price factor, you subtract each discount from 100% and multiply the results together. Here's how you calculate it step-by-step:
1. Start with 100% (the original price).
2. Subtract the first discount of 25% from 100%: 100% - 25% = 75% (the price after the first discount).
3. Subtract the second discount of 15% from the result: 75% - 15% = 60% (the price after the second discount).
4. Subtract the third discount of 10% from the result: 60% - 10% = 54% (the final price after all three discounts).
Therefore, the net price factor for trade discounts of 25/15/10 is 54%.