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Key Terms
Key Terms
Product flow
Manufacturer Wholesaler Retailer Consumer
Price flow
Consumer
List Price
$80
30%
Retailer Wholesaler
Net Price Net Price
$56
50%
off list
$40
Manufacturer
Cost
$20
off list
2.
$87
$2.70
$132
$368
Examples:
The complement of 30% is 70%.
The complement of 55% is 45%
The complement of 5% is 95%.
Business Math, Eighth Edition
Cleaves/Hobbs
2.
Example:
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
Business Math, Eighth Edition
Cleaves/Hobbs
$1275
$71.40
2.
$88.45
2.
Key Terms
$427.50
September 12
(2% discount)
= $1,223.04
September 15
(1% discount)
= $1,235.52
October 1
(no discount)
= $1,248.00
October 3
(5% penalty)
= $1,310.40
An EOM exception!
B = P/R