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Glossary of Business Math ch. 7, 8, 18

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trade discount
reduction off the original selling price(list price) not related to early payment
trade discount amount=list price x trade discount rate
cash discount
result of an early payment based on the terms od sale
trade discount rate
persent off the list price that retailers can deduct
net price
price that retailer pays for an item
net price= list price-trade discount amount
single trade discount
one trade discount
complement
difference between the discount rate and 100%
Ex.1-.4=.6
chain discount
trade discounts in a series of two or more discounts
net price equivalent rate
find the complement, multiply decimal. Do not round off. multiply list price times the net price equivalent rate
single equivalent discount rate
subtact net price equivalent rate from 1. multiply the list price times single equivalent discount rate = trade discount amount
markup
price which retailers sell items to cover operating expenses and make a profit
perishable
selling price perishable=total$/#of units produced(spoilage)
inventory turnover at retail
net sales/average invnetory @ retail
inventory turnover at cost
cost of goods sold/average inventory @ cost

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