What was the trade discount rate if merchandise with a list price of $8,700 was sold at a net price of $6,351?
1 - 6351/8700 = _____
To find the trade discount rate, we can use the formula:
Trade Discount = List Price - Net Price
Given that the List Price is $8,700 and the Net Price is $6,351, we can substitute these values into the formula:
Trade Discount = $8,700 - $6,351
Now, we can calculate the Trade Discount:
Trade Discount = $2,349
To find the Trade Discount Rate, we need to divide the Trade Discount by the List Price and then multiply by 100:
Trade Discount Rate = (Trade Discount / List Price) * 100
Substituting the values we already have:
Trade Discount Rate = ($2,349 / $8,700) * 100
Calculating the Trade Discount Rate:
Trade Discount Rate ≈ 27%
Therefore, the trade discount rate is approximately 27%.