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Module 4. Trade Discount and Discount Series

Trade discounts are reductions from listed prices given to buyers, while single discounts are given for specific products. Series discounts are given based on different conditions being met. Trade discounts, single discounts, and discount series are calculated using the listed price multiplied by the discount rate to determine the discount amount, with the net invoice price being the listed price minus any discounts applied. Examples are provided for calculating discounts and net prices under various single and series discount scenarios.

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280 views2 pages

Module 4. Trade Discount and Discount Series

Trade discounts are reductions from listed prices given to buyers, while single discounts are given for specific products. Series discounts are given based on different conditions being met. Trade discounts, single discounts, and discount series are calculated using the listed price multiplied by the discount rate to determine the discount amount, with the net invoice price being the listed price minus any discounts applied. Examples are provided for calculating discounts and net prices under various single and series discount scenarios.

Uploaded by

Christian Verdadero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Trade Discount and Discount Series

Supply Chain

Trade Discounts – is a reduction from the listed price given to the buyers.

Single Discounts – a discount that is given to a customer when buying a


certain product.

Formula:

Discount = List Price x Discount Rate

Net Invoice Price = List Price – Discount

Examples:

1.) Compute the discount for an item with a list price of P 1350 subject to a
15% discount. What is the net invoice price?

2.) Determine the list price f an item if a 15% discount on an item amounts P
22.50.

3.) Alex purchases 5 pairs of denim jeans at a discount of 25%, which are listed
at a price of P 1350 per piece. How much does each denim jeans cost?

Series Discounts- a discount that is given based on different conditions.

Examples:

1.) Compute for the discount and the net invoice price if an item listed at Php
1225 is given a 10% and 5% discount.

2.) A retail shop sold bags at a net price of P 999.99 each, after putting
discount series of 20%, and 10%. Find the list price.

3.) A denim pants is listed for P 1,393.75 less 18%, 9% and 3%. What is the net
price.

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