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Apart from the fact that often you cannot use multiple discounts at the same time, they are defined multiplicatively, not additively.
A 20% discount means that the price is reduced by 20% to 80% of its full price.
A 20% discount on top of a 20% discount is 80% of 80% which is 0.8*0.8 of the full price which is 64%.
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What is the mathematical formula for calculating terms of trade?
Terms of trade = Price of Exports / Price of Imports The prices of exports and imports are usually calculated with respect to a specified base year. From that it is possible to calculate changes in the mix and the value of the trade flows to arrive at prices for the period in question.
Purchase discounts is the same as trade discounts true or false?
false
Trade discounts also called functional discounts are?
yes, trade discounts is also called functional discounts I wish I could improve this answer since it does not address the actual question of what these discounts are, but I am also looking for that answer, so hopefully someone will actually take the time to read the question before answering it.
How do you calculate trade discounts?
You have to ask the seller what trade discount they will give you. Its usually a sliding scale based on volume or established rating of the buyer with that seller.
How do you calculate selling price if you know cost price and profit percentage.?
If you know the trade price, and the the mark-up (profit) - simply multiply the trade price by the percent mark-up plus 1. Using your example - you have a phone which you bought at 1500 trade, and you want 50% profit, then the selling price is 1.5 x 1500 which is 2250.
