Planning Ahead Inventory is an important part of many businesses. Can you think of problems that might arise from having too much or too little of a product in stock?

Lesson Objective Compute the trade discount, the net price, and the trade-discount rate. Content Vocabulary list price The price at which a business generally sells an item, also called the catalog price. trade discount trade-discount rate net price trade discount A discount from the list price. trade-discount rate The amount of the discount of an item expressed as a percentage of the list price. net price The price actually paid for a discounted item.

Johnson Auto Repair Shop is purchasing an electronic ignition module for a sport coupe that is six years old. The list price in the wholesalers catalogue is $845. Johnson receives a 40 percent trade discount. What is the net price of the module? Example 1

Find the trade discount. List Price × Trade-Discount Rate $845 × 40% = $ Example 1 Answer: Step 1

Find the net price. List Price – Trade Discount $ – $ = $ Example 1 Answer: Step 2

Murray Plumbing receives an 18 percent trade discount from their wholesale supply company. The list price on an item that Murray needs to purchase is $ What is the net price? Practice 1

$ Practice 1 Answer

Find the trade discount and the net price. List price: $ Trade-discount rate: 32 percent Practice 2

Trade discount: $33.79 Net price: $71.80 Practice 2 Answer