A retailer gives a cash discount of 6% on an article listed 400 cedis. if the retailer is allowed 18% trade discount what is the retailer's profit percent correct your answer to two significant figures
consumer discount reduces price to
400 - 400(.06) = 376
if the retailer bought the product with a 18% trade discount he or she paid 400 - 400(.18) = 328
the profit percent made is (376-328)/328 = .146341....
Please how did you get the profit percent, I dont understand the method you used
To calculate the retailer's profit percent, we need to first determine the selling price of the article after both the trade discount and the cash discount.
First, let's calculate the trade discount:
Trade Discount = Listed Price * Trade Discount Rate
Trade Discount = 400 * 0.18
Trade Discount = 72 cedis
Therefore, the selling price after the trade discount is:
Selling Price = Listed Price - Trade Discount
Selling Price = 400 - 72
Selling Price = 328 cedis
Next, let's calculate the cash discount:
Cash Discount = Selling Price * Cash Discount Rate
Cash Discount = 328 * 0.06
Cash Discount = 19.68 cedis
Now we can calculate the final selling price:
Final Selling Price = Selling Price - Cash Discount
Final Selling Price = 328 - 19.68
Final Selling Price = 308.32 cedis
Finally, we can calculate the profit percentage:
Profit Percentage = (Final Selling Price - Listed Price) / Listed Price * 100
Profit Percentage = (308.32 - 400) / 400 * 100
Profit Percentage = -91.68 / 400 * 100
Profit Percentage = -0.2292 * 100
Profit Percentage = -22.92%
Rounded to two significant figures, the retailer's profit percent is approximately -22.92%.
To find the retailer's profit percentage, we need to follow these steps:
Step 1: Calculate the selling price after giving the cash discount.
The cash discount is 6% of 400 cedis:
Cash discount = (6/100) * 400 = 24 cedis
Therefore, the selling price after the cash discount is:
Selling price = List price - Cash discount = 400 - 24 = 376 cedis.
Step 2: Calculate the selling price after giving the trade discount.
The trade discount is 18% of the selling price after the cash discount:
Trade discount = (18/100) * 376 = 67.68 cedis.
Therefore, the selling price after the trade discount is:
Selling price = Selling price - Trade discount = 376 - 67.68 = 308.32 cedis.
Step 3: Calculate the profit percentage.
The profit is the difference between the selling price after all the discounts and the cost price, which is the listed price.
Profit = Selling price - Cost price = 308.32 - 400 = -91.68 cedis.
Now, to find the profit percentage, we divide the profit by the cost price and multiply by 100:
Profit percentage = (Profit / Cost price) * 100 = (-91.68 / 400) * 100 = -22.92%.
However, since negative profit doesn't make sense in this context, we can say that the retailer incurred a loss of 22.92% on this article.
Therefore, the retailer's profit percentage (or loss percentage) is approximately -22.92%.