What was the trade discount rate if items sold with a list price of $7,150 were...

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What was the trade discount rate if items sold with a list price of $7,150 were sold at a net price of $5,620? (Round to the

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Answer 1

Answer #1

Solution:

Option A . 21% is the correct answer

Calculation:

The trade discount rate can be calculatedby using the now - familiar percentage formula

Rate = Portion /Base

The amount of the trade discount is the portion, or numerator , and the list price is the base, or denominator.

Trade discount rate = Trade discount/ List price

Step 1 calculate the amount of trade discount

Trade discount = List price - Net price

= 7150 - 5620 = $ 1530

Step 2 Calculate the trade discount rate.

Trade discount rate = 1530 / 7150 = 21%

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Answer 2

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