15.2 Trade Discounts-­‐ Complement Method Objective: Students will be able to understand how to compute the net price using the complement method. Complement Percent = 100% − Trade Discount Rate Net Price = List Price ∗ Complement Percent Total List Price = List Price ∗ Quantity Ex: List Price: $15.67 Trade Discount rate: 15% a. Find the complement percent. Complement Percent = 100% − 15% = 85% b. Find the net price. Net Price = 15.67 ∗ 85% = $13.32 Ex: Sew More places the following order with their wholesaler. The store receives a 35 percent trade discount. Find the net price of the order below. Description Quantity List Price Total List Net Price Price Scissors 5 $6.95 a. b. Thread 12 $1.99 a. b. Ribbon 23 $3.95 a. b. a. Total List Price Scissors: 6.95 ∗ 5 = $34.75 Thread: 1.99 ∗ 12 = $23.88 Ribbon: 3.95 ∗ 23 = $90.85 b. Net Price Scissors: 34.75 ∗ 65% = $22.59 Thread: 23.88 ∗ 65% = $15.52 Ribbon: 90.85 ∗ 65% = $59.05 65% is the complement percent because the trade discount rate is 35% Hw #2 Pg. 490 # 1-­‐14