BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Php 436.05
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Php 4, 723.80
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Php 4, 723. 88
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Php 4, 723.89
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Detailed explanation-1: -The trade discount series 40/12.5//2 is equivalent to a single trade discount of 52.84%.
Detailed explanation-2: -Trade discounts are usually based on the list price (catalogue price). Sales are recorded based on net price. Net price = List price – Trade discount. Therefore, trade discounts are not recorded in the books of accounts.
Detailed explanation-3: -The net price is the value at which a product or service is sold after all taxes and other costs are added and all discounts subtracted. Net price is what a customer pays.
Detailed explanation-4: -Single trade discounts are purchase incentives provided by store owners that are good for one transaction only. The opposite is a series discount, where conditions apply in order for a customer to reach additional savings levels.