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Trade Discount— Complement Method

SECTION 15-2. pp. 489-491. Trade Discount— Complement Method. Calculate: net price using the complement method. Section Objective. Key Words to Know. complement method (p. 489) A way to find the net price of a discounted item by subtracting the discount rate from 100 percent. Formula.

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Trade Discount— Complement Method

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  1. SECTION 15-2 pp. 489-491 Trade Discount— Complement Method

  2. Calculate: net price using the complement method Section Objective

  3. Key Words to Know complement method (p. 489) A way to find the net price of a discounted item by subtracting the discount rate from 100 percent.

  4. Formula Net Price = List Price × Complement of Trade-Discount Rate

  5. Restoring Vintage Vehicles p. 489 What is the complement of 35 percent?

  6. Example 1 The list price of an electronic ignition module in the wholesaler’s catalog is $845. Repair shops receive a 40 percent trade discount. What is the net price of the module?

  7. Example 1 Answer: Step 1 Find the complement of trade-discount rate. 100% – 40% = 60%

  8. Example 1 Answer: Step 2 Find the net price. List Price × Complement of Trade-Discount Rate $845.00 × 60% = $507

  9. Formula Net Price = List Price × Percent Price

  10. Example 2 Shelita Reeves runs Affiliated Lumber and buys paint from Dap Corporation. Dap grants a 40 percent trade-discount rate to all retail outlets. How much does Reeves pay for a case of white ceiling paint if it retails for $132.

  11. Example 2 Answer Step: Find the net price List Price = List Price × Percent Price $132.00 × (100% − 40%) $132.00 × 60%= $79.20

  12. Practice 1 Partyland receives a 23 percent trade discount. What will Partyland pay for the following items? Paper plates @ $1.57 Plastic cups @ $1.09 Plastic cutlery @ $0.99

  13. Practice 1 Answer Paper plates: $1.21 Plastic cups: $0.84 Plastic cutlery: $0.76

  14. Practice 2 Find the net price. List price: $295.79 Trade-discount rate: 32%

  15. Practice 2 Answer $201.14

  16. END OF SECTION 15-2 Trade Discount— Complement Method

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