Question #261699

1. A bicycle is listed in a wholesaler's catalog at P5400. The bicycle is sold to a retailer for a net price of P4087.50. What rate trade discount was given?



2. A swimsuit with a list price of P3499 was sold to a retailer for P2624.25. What rate of trade discount is given?



3. A car accessory listed at P1136 has a net price of P760. What is the rate of discount?



4. Utik utik distributors offers discounts of 25%, 12.5%, and 4% on a line of products. For how much should an item be listed if it is to be sold for P113.40?



5. The net price of a product is P63.31. What is the suggested retail price (list price) of a discount off 35% was allowed?



6. In 1995, david bought 200m² lot for P200,000. This year, he is planning to sell the lot for P2,000,000. How much is the gross margin? What is the gross margin rate?




1
Expert's answer
2021-11-15T08:28:17-0500

Net Price = List Price -Trade Discount

Trade-Discount Rate = Trade Discount/List Price


1.

Trade Discount = 54004087.5=P1312.55400-4087.5=P1312.5

Trade-Discount Rate = 1312.5/5400=0.24=24%1312.5/5400=0.24=24\%


2.

Trade Discount = 34992624.25=P874.753499-2624.25=P874.75

Trade-Discount Rate = 874.75/3499=0.25=25%874.75/3499=0.25=25\%


3.

Trade Discount = 1136760=P3761136-760=P376

Trade-Discount Rate = 376/1136=0.33=33%376/1136=0.33=33\%


4.

List Price = Net Price +Trade Discount = Net Price + Trade-Discount Rate x List Price

List Price = Net Price/(1 - Trade-Discount Rate)


for 25%:

List Price = 113.4/(10.25)=P151.20113.4/(1-0.25)=P151.20


for 12.5%:

List Price = 113.4/(10.125)=P129.60113.4/(1-0.125)=P129.60


for 4%:

List Price = 113.4/(10.04)=P118.13113.4/(1-0.04)=P118.13


5.

List Price = 63.31/(10.35)=P97.4063.31/(1-0.35)=P97.40


6.

Gross Margin = Revenue – Cost of Goods Bought

Gross Margin = 2000000200000=P18000002000000-200000=P1800000


Gross Margin Rate = (Revenue – Cost of Goods Bought) / Revenue

Gross Margin Rate = (2000000-200000)/2000000=0.9=90\%


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