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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Calculate the trade discount for 30 boxes of computer paper if the unit price is $13.26 and a single trade discount rate of 50% is allowed
The trade discount is $
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Expert Solution

Step 1 calculation of trade discount
A trade discount is the reduction in price a manufacturer or wholesaler gives a wholesaler or retail when they buy a product or group of products. In other words, a trade discount is a certain percentage a manufacturer is willing to reduce its list price for wholesalers or retailers.
Trade discount=The total price is $13.26*30 boxes and the trade discount will be one half of this value i.e 50%
=$13.26*30*50%
=$198.9
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