BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trade Discount
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Discount Series
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Net Price
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List Price
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Detailed explanation-1: -A discount series refers to a discount that you offer based on a number of different conditions. Rather than just offering the discount after one condition is met, the discount series requires purchasers to meet different conditions at different times. For example, let’s say you sell wholesale auto parts.
Detailed explanation-2: -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.
Detailed explanation-3: -If the successive discounts d1, d2, and d3 are given on an item, then the selling price of that item is calculated by, SP = (1 – d1/100) x (1 – d2/100) x (1 – d3/100) x MP, where SP is selling price and MP is marked price.