TRADE DISCOUNT

PRACTICE

•1. What percent of 150 is 55?

ANSWER

36.67%
•2. Two hundred eughty is 32% of
what amount?
ANSWER

875
•3. What is 30% of 650?
ANSWER

195
TALISAY BATANGAS
A-CTIVITY : STORY TELLING

• Tilapia is from our Taal lakel ocated in Talisay Batangas.

• Ask the students to describe how selling of tilapia pass
by through supply chain.
TASK :PREPARE THE STATEMENT OF
CHANGES IN EQUITY
• Here students will make a chain story on how tilapia from taal lake
distributed to different markets.
• How much is the investment?
• How much is the income?
• How much is the Withdrawal?
• How much is the expenses?
• Who are the sellers? How about the chain?
• In this part of the lesson students will now analyze
how single trade discount and discount series used
in setting the Manufacturer’s suggested retail price
(MRSP) or also known as list price.
ACTIVITY

• Original price if tilapia: P 185.00

• Rate of Discount: 25%
• Trade Discount: UNKNOWN
• The price of 1kg tilapia = ORIGINAL PRICE-TRADE
DISCOUNT
– = P 185.00- 46.25
– = 138.75
– WHAT IF YOUA ARE GOING TO BUY 10kg of tilapia
– =10 kg x 46.25
– =P 462.25
TRADE DISCOUNT

• As a producer of good which will you choose

trade discount or discount series?
• As a buyer of goods which will you choose
trade discount of discount series?
• Explain your answer.
EXAMPLE

• Mam Jenina bought books from a book publisher

worth Php 50, 000. Find the 30% single trade
discount of the products. Find the discount series
broken up into a 20%, 7%, 3%. Respectively.You as a
buyer which discount are you going to choose?
Why?
TRADE DISCOUNT
• Is the amount by which the retail price of a product is reduced by
the manufacturer when it sold to the reseller or customers.
• Trade discount problems are percentage-related problems
• The formula used to solve the trade discount:
• TRADE DISCOUNT= ORIGINAL PRICE X DISCOUNT RATE

• List price is the fee for a service or product before discounts are
deducted or sales tax are added
• Net Price is the final charge you pay for a product or service after
discounts and sales taxes are computed
EXAMPLE 1
• An air conditioning unit, listed at P 36,000
with a discount of P 7,200, is offered to a
customers. Determine the discount rate.
• Given: Original Price: P 36,000
Discount P 7,200
Unknown : Discount Rate= Trade Discount x 100%
Original Price
EXAMPLE 2
• Alpha Mart places a P 3,500 worth of order for
assorted brands of chocolate. The chocolate
wholesaler gave a 25% discount? How much is the
trade discount?
Given: OP= P 3,500
Discount rate= 25%
Trade discount= OP X DR
 EXAMPLE 3
• In video store, a DVD that sells for P375 is marked
10%off. What is the discount? What is the sale price of
the DVD?
• OP= 375
• DR= 10%
• Trade Discount=Unknown
• Trade Discount= OP x DR = 37.5
• Sales price of the DVD= OP – TD
=P375- 37.50
=P 337.50
FORMULA
DISCOUNTED PRICE= OP-TD
ORIGINAL PRICE= TD/DR
ORIGINAL PRICE= DISOCUNTED PRICE-TRADE
DISCOUNT
TRADE DISCOUNT=TD X DR
OR =OP X DR
DISCOUNT RATE= TD/OP X 100%
COMPLETE THE TABLE
Original Trade Discount Discounted
price Discount Rate Price
6,500 1,200

500 10%

2,100 5,600

27, 800 35%

COMPLETE THE TABLE
Original Trade Discount Discounted
price Discount Rate Price
6,500 1,200 18.46% 5,300

5,000 500 10% 4,500

7,700 21,000 27.27% 5,600

27, 800 9,730 35% 18,070

•Why it is important to know
these kinds of discount? How
will you apply it in real life
application?
ACTIVITY

A beauty salon is celebrating its first anniversary.

They are offering hair rebonding service for only
P 699. After the offer, the cost of service will be
back to P 1,699. What is the estimated discount
rate of the offer?
ASSIGNMENT
• 1. A house and lot near Royale Tagaytay Estate
located at Upli, Alfonso Cavite with original price of
P 2,300,000 was sold by Ms. Michelle Laylo at a
discounted price of P 2,150,000. What was the
discount rate given to the buyer?
• 2.During a clearance sale, a polo shirt at P 1, 700 is
reduced to P 800. What percent of the original price
is the discount?
ASSIGNMENT
• 1. A house and lot near Royale Tagaytay Estate
located at Upli, Alfonso Cavite with original price of
P 2,300,000 was sold by Ms. Michelle Laylo at a
discounted price of P 2,150,000. What was the
discount rate given to the buyer?
• 2.During a clearance sale, a polo shirt at P 1, 700 is
reduced to P 800. What percent of the original price
is the discount?