8.1 Single Trade Discounts. Find the trade discount using a single trade discount rate; find the net price using the trade discount. Find the net price using the complement of the single trade discount rate. Key Terms.
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ManufacturerWholesaler Retailer Consumer
Consumer Retailer Wholesaler Manufacturer
List Price Net Price Net Price Cost
$80 $56 $40 $20
off list off list
Find the trade discount for a cd player that retails at $120 and has a trade discount rate of 35%.
Trade discount = Rate x List Price
Net Price = List Price – Trade discount
Find the net price of a coffee maker that lists for $20 and has a trade discount rate of 20%.
80% is the complement of 20%
NP = $20 x 0.80 = $16
$260 ≠ $273.60
To find the trade discount by applying a trade discount series and using the single discount equivalent:
TD = single discount equivalent x list price
$654.75 + 125 = $779.75= amount to be paid