15.5 Chain Discounts-­‐ Complement Method Objective: To understand how to compute the final price using the complement method. Net Price Rate = (100-­‐1st Discount)∗(100-­‐2nd Discount)÷100 put % sign with an answer Net Price = List Price ∗ Net Price Rate SED: Single Equivalent Discount (complement of the net price rare) = 100-­‐ Net Price Rate Put % sign with an answer Discount = List Price ∗ SED Ex: List price: $32.89 Chain discount: 25% less than 15% Find the net price rate. Net Price Rate = (100-­‐25)∗(100-­‐15)÷100 = 63.75% Ex: Small retail store offers trade discounts and additional discounts to encourage large orders, what is the net price of item number 92AB if the invoice total is over $400? Item List Trade Number Price Discount 45CE 92AB $27.48 $12.59 38% 15% Additional Discounts 20% (If invoice total is over $500) 10% (If invoice total is over $400) Net Price Rate = (100-­‐15)∗(100-­‐10)÷100 = 76.5% Net Price = 12.59 ∗ 76.5% = $9.63 Ex: List price: $140.00 Chain discount: 20/15 Find the SED and discount. Net Price Rate = (100-­‐20)∗(100-­‐15)÷100 = 68% SED = 100-­‐ 68 = 32% Discount = 140 ∗ 32% = $44.80 Hw # 5 Pg 499 # 1-­‐4,7,8,11,12,14