BACHELOR OF BUSINESS ADMINISTRATION

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: -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-3: -A cash discount is usually around 1 or 2% of the invoice total, although some businesses may offer up to a 5% discount.