a $20 cell phone case is sold in bulk to your store for $16. calculate the trade discount rate.
a $20 cell phone case is sold in bulk to your store for $16. calculate the trade discount rate.
Answer
Explanation:
Step1: Calculate the discount amount
The discount amount is the original price minus the bulk - price. Let the original price (P = 20) and the bulk - price (B=16). Then the discount amount (D=P - B). (D = 20-16=4)
Step2: Calculate the trade - discount rate
The trade - discount rate (r) is calculated using the formula (r=\frac{D}{P}\times100%) (where (D) is the discount amount and (P) is the original price). Substitute (D = 4) and (P = 20) into the formula: (r=\frac{4}{20}\times100%=0.2\times100% = 20%)
Answer:
(20%)