Trade & Cash Discount
A manufacturer normally quotes a discount rate in percentage to the retailer.The rate is called the trade discount rate.The trade discount rate must be calculated on th list price..
Trade discount=list price x trade discount rate
[TD=L-NP]
Net price=list price-trade discount
[NP=L(1-R)]
Net price=list price-chain discount
[NP=L(1-rx)(1-ry)]
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