BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Another way of finding the net price is the complement method. The complement of your trade-discount rate is 100 percent minus the discount rate. This is sometimes called the net-price rate. You can multiply the list price by the complement to find the net price.

Detailed explanation-2: -Net price is what a customer pays. To calculate the net price, start with the list price and add any taxes and other government-mandated charges. Then subtract any discounts, rebates or negotiated prices.

Detailed explanation-3: -Trade Discount Amount = List Price x Trade Discount Percentage. Net Amount Payable = List Price x (1-Trade Discount Percentage) Amount. No calculation required as a seller provides the discount amount.

Detailed explanation-4: -The trade discount may be stated as a specific dollar reduction from the retail price, or it may be a percentage discount. The trade discount customarily increases in size if the reseller purchases in larger quantities (such as a 20% discount if an order is 100 units or less, and a 30% discount for larger quantities).