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Question

What is an example of a trade discount?


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Solution

The retail cost for a blue top is 2 rupees. One affiliate orders 500 blue, for which “k” allows a 30% trade discount. Subsequently, the complete retail cost of 1,000 rupees is decreased to 700 rupees, which is the sum that “K” bills to the affiliate. The exchange rebate is, thusly, 300 rupees.


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