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Trade Discount

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

What is the price at which the manufacturer sells the goods to the customer (retailer)?

a)

Net Price

b)

List Price

2.

If the trade discount rate is 12% and the new price is RM440, what is the list price of the product?

a)

RM500

b)

RM460

c)

RM420

d)

RM400

3.

What is the trade discount rate if the new price is RM600 and the list price is RM800?

a)

20%

b)

30%

c)

15%

d)

25%

4.

_____ is the price at which the customer (retailer) pays to the manufacturer.

a)

Net Price

b)

List Price

5.

In a business transaction, if the trade discount rate is 10% and the new price is RM450, what is the list price of the product?

a)

RM400

b)

RM420

c)

RM475

d)

RM500

6.

What is the formula to calculate the Net price after trade discount?

a)

Net Price = List Price - (List Price * Trade Discount rate)

b)

Net Price = List Price + Trade Discount

c)

Net Price = List Price / (1 - Trade Discount rate)

d)

Net Price = List Price + (List Price * Trade Discount)

7.

In a business transaction, if the list price of a product is RM100 and the selling price after trade discount is RM80, what is the trade discount rate?

a)

10%

b)

15%

c)

25%

d)

20%

8.

How is the trade discount amount calculated?

a)

Trade Discount Amount = Catalogue Price - New Price

b)

Trade Discount Amount = (List Price / Original Price) * 100.

c)

Trade Discount Amount = (Normal Price - New Price) * Normal Price.

d)

Trade Discount Amount = (New Price - Catalogue Price) / Catalogue Price.

9.

What is the trade discount rate?

a)

The trade discount rate is the percentage by which the listing price of a product or service is reduced for trade customers.

b)

The trade discount rate is the fee charged for using a trade platform.

c)

The trade discount rate is the interest rate charged on trade loans.

d)

The trade discount rate is the tax imposed on trade transactions.

10.

Calculate the net price of a case of paper if there are 20 reams per case and each ream costs RM1.14. The trade discount is 4 1/2%.

a)

RM0.05

b)

RM1.03

c)

RM21.77

d)

RM22.80