Page 27 - LESSON 2: DISCOUNTS AND COMMISSIONS
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The following examples will show how single trade discounts are computed.
Example 1.
TRIPOWER Technology Co. Ltd manufactures USB products, mobile power bank and
computer peripherals. In its catalog, a mobile power bank is priced at ₱2,400, less a discount to the
trade of 25%. What will Octagon Computer Center have to pay for the mobile power bank? M2_L2
Solution:
This problem involves two elements: the discount and the net price.
1. = ×
= ₱2,400 × 0.25
= ₱600
2. = −
= ₱2,400 − 600
= ₱1,800
Example 2.
A company offers dealers a trade discount of 30% on industrial fans. If the list price of
an industrial fan is ₱1,600, how much is the net price?
Solution:
1. = ×
= ₱1,600 × 30
= ₱480
2. =
= ₱1,600 − ₱480
= ₱1,120
LESSON 2: DISCOUNTS AND COMMISSIONS 5 | P a g e
