BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Formula: How Is Trade Discount Calculated? A trade discount, or a functional discount, is deducted from a seller’s original catalogue list price either as a specific monetary amount or a percentage reduction, in which case the trade discount amount is calculated by multiplying the list price by the discount percentage.

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: -An item’s intended selling price, or net price, equals list price minus a given percentage called a trade discount. The amount of trade discount usually depends on whether a buyer is a wholesaler, retailer or final consumer. The larger the volume of the purchase, the larger the discount given.

Detailed explanation-4: -Net Price. Rate. Q. It is computed by dividing the trade discount and the original price.