BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$403.50
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$4.04
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$40.35
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$40.40
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Detailed explanation-1: -In the single discount formula, the calculation is pretty straightforward. For example, if the discount offered is 35 percent and the total value of the goods sold are $100, 000, the single discount formula would be: $100, 000 x 35 percent = $35, 000 discount.
Detailed explanation-2: -5% is a trade discount that rewards a bulk payment. 5% is a cash discount that rewards an early invoice payment within 30 days.
Detailed explanation-3: -Meaning of Trade Discount Trade discount is referred to as the discount that is offered by a seller to the buyer of the product in the form of reduction in the price of the item. Trade discounts are offered to increase the sales of the product and make the customers feel that they are getting the best offer.