KOLEJ BANGI

SUBJECT
BUSINESS MATHEMATICS (TBM1063)

NAME | NO. ID : SECTION 4 AB101 1) MUHAMMAD JAMAL FIKRI BIN MOHD RAZID PTM140716652 2) MOHAMAD FIKRY HAFIDZ BIN JUPRI PTM140716685 3) NUR HAZIQAH BINTI ABD. RAZAK PTM140716677 4) NURUL HASANAH BINTI KAMARUDIN PTM140716657 5) NURRUL ATIKAH BINTI MOHD FATMI SHAH PTM140716696 6) AMIRA BINTI SHIR MOHAMMAD PTM140716658

NAME LECTURER : MADAM NURULHUDA BINTI ABDUL ZABAR
DATE : 16 JULY 2014

ACKNOWLEDGEMENT

I would like to express my gratitude and appreciation to all those who gave us the possibility to complete this report. A special thanks to our lecturer, Madam Nurulhuda binti Abdul Zabar whose help, stimulating suggestions and encouragement, helped us to coordinate our project especially in writing this report.

A special thanks goes to my team mate, who help to assemble the parts and gave suggestion about the trade and cash discount. Thank you my team mate for giving opportunity work together as a team.

Last but not least, many thanks go to the head of the project, Jamal Fikri whose have given his full effort in guiding the team in achieving the goal as well as his encouragement to maintain our progress in track. I would to appreciate the guidance given by other supervisor as well as the panels especially in our project presentation that has improved our presentation skills by their comment and tips.

ABSTRACT
2.1 TRADE DISCOUNT CUSTOMER RETAILERS WHOLESALERS/MANUFACTURES * THE PROCESS OF TRADE DISCOUNT IS BETWEEN RETAILERS AND WHOLESALERS. TRADE DISCOUNT IS DEDUCTION FROM THE LIST PRICE AND IT IS USUALLY GIVEN TO BUYERS FOR THE FOLLOWING REASONS : * TO CLEAR OLD OR SPOILT ITEMS * TO COMPETE WITH OTHER SELLERS * TO ENCOURAGE BULK PURCHASES 2 TYPES OF TRADE DISCOUNT : * SINGLE DISCOUNT * CHAIN OR SERIES DISCOUNT 2.2 CASH DISCOUNT * CASH DISCOUNT IS THE REDUCTION ON THE AMOUNT DUE TO CUSTOMERS WHO PAY THEIR BILLS WITHIN A STIPULATED PERIOD OF TIME. THIS IS TO ENCOURAGE PROMPT PAYMENT OF BILLS. EXAMPLE : 1) 10/15, 3/20, N/60 2) NET 30 10% 3% net 0 15 days 20 days 60 days 1. 10% OF THE NET PRICE MAY BE DEDUCTED IF THE INVOICE IS PAID WITHIN 15 DAYS OF THE DATE OF THE INVOICE; 3% MAY BE DEDUCTED IF THE INVOICE IS PAID BETWEEN 15TH AND 20TH DAY AND FULL AMOUNT MUST BE PAID BY THE 60TH DAY. AFTER THE 60TH DAY, THE BILL IS OVERDUE. 2. NET 30 NET PRICE AMOUNT. THE CUSTOMER HAS TO PAY WITHIN 30 DAYS FROM THE DATE OF INVOICE.

TABLE OF CONTENTS : NO | CONTENTS | PAGES | 1. | Abstract – Acknowledgement | 2 - 4 | 2. | Table of contents | 5 | 3. | Contents * Method * Finding | 6 – 10 | 4. | Conclusion | 11 | 5. | References | 12 | | TOTAL MARK | /30 /5% |

CONTENTS Invoice #: 4722 Top Score Enterprise Lot 20, Jalan USJ 9/4 47600 Subang Jaya, Selangor Tel/Fax:03-5631 6288 Email:topscore@gmail.com INVOICE FAS Cycle Sdn Bhd No. 19, Jalan Permai 1, Taman Kamunting Permai, 34600Taiping, Perak. 2 January 2014 PRODUCT DESCRIPTION | QUANTITY | LIST PRICE PER UNIT | DISCOUNT | GAMMAX 24’ ALLOY MTB | 10 | RM600.00 | 15% | GARION 26’ ALLOY MTB | 5 | RM400.00 | 15%, 7% | Terms: 3/10, 2/15, n/30 Shipping and Handling: RM 150.00 YOU ARE REQUIRED TO PREPARE THE TOTAL PAYMENT MADE IF : a) THE INVOICE WAS SETTLED ON 4TH JANUARY 2014 b) THE INVOICE WAS SETTLED ON 15TH JANUARY 2014 c) THE INVOICE WAS SETTLED ON 28TH JANUARY 2014 STEP 1 * METHOD GAMMAX 24’ ALLOY MTB FORMULA = LIST PRICE x QUANTITY

* FINDING GAMMAX 24’ ALLOY MTB = RM 600 x 10 =RM 6,000 * METHOD GARION 26’ ALLOY MTB FORMULA = LIST PRICE x QUANTITY

* FINDING GAMMAX 24’ ALLOY MTB = RM 400 x 5 =RM 2,000 STEP 2 * METHOD NET PRICE GAMMAX 24’ ALLOY MTB FORMULA = NET PRICE = LIST PRICE (1-R1)(1-R2)(1-R3)

* FINDING * 15%
= 15/100
= 0.15
NET PRICE GARION 26’ ALLOY MTB = RM 6,000(1-0.15) =RM 5,100 * METHOD NET PRICE GARION 26’ ALLOY MTB FORMULA = NET PRICE = LIST PRICE (1-R1)(1-R2)(1-R3)

* FINDING * 7%
= 7/100
= 0.07
NET PRICE GAMMAX 24’ ALLOY MTB = RM 2,000(1-0.15)(1-0.07) =RM 1,581 STEP 3 * METHOD NET PRICE OF INVOICE GAMMAX 24’ AND GARION 26’ ALLOY MTB FORMULA = NET PRICE GAMMAX 24’ + NET PRICE GARION 26’

* FINDING * NET PRICE OF INVOICE GAMMAX 24’ AND GARION 26’ ALLOY MTB = RM 5,100 + RM 1,581 = RM 6,681

3% 2% net 2TH JAN 10 DAYS 4TH JAN 15 DAYS 15TH JAN 30 DAYS 28TH JAN a) * 3%
= 3/100
= 0.03
INVOICE WAS SETTLED 4TH JANUARY 2014 TRADE DISCOUNT = RM 6,681(1-0.03) = RM 6,480.57 NET PRICE = RM 6,480.57 + RM 100 = RM 6,580.57 b) * 2%
= 2/100
= 0.02
INVOICE WAS SETTLED 15TH JANUARY 2014 TRADE DISCOUNT = RM 6,681(1-0.02) = RM 6,547.38 NET PRICE = RM 6,547.38 + RM 100 = RM 6,647.38 c) INVOICE WAS SETTLED 28TH JANUARY 2014 TRADE DISCOUNT = RM 6,681 NET PRICE = RM 6,681 + RM 100 = RM 6,781.00

CONCLUSION We learn how a company uses the invoice accordingly. We also pay the cheapest price with the earliest invoice from the supplier. In each period granted by suppliers to get the best discounts. Good provider will try to give customers an affordable price. If the customer is unable to meet a given period by the supplier, they will still pay the original price of the goods purchased. Customers must take the opportunity to get a cheaper price than the original price. Supplier has provided a long period of difficult customer to pay. Benefits to the cheaper price and can estimate the period of payment. Lastly but not least, customers will make the smart move. In addition, customers get to buy goods cheaper to add items. Suppliers also have regular customers because it provides a useful service and allowed the customer to pay the proper period.

REFERENCES * BUSINESS MATHEMATICS (IBRAHIM & DAUD MOHAMAD) * www2.bakersfieldcollege.edu/ivey/Bus%20Math/chap007.ppt * http://members.shaw.ca/anhaouy/Pdf_Files/Hosp1107_Chapter05.pdf * http://members.shaw.ca/anhaouy/Pdf_Files/Hosp1107_Chapter05.pdf * http://www.learningace.com/doc/7717669/dcc0dacf35444f7539046ac5a8af9592/chapter-8-trade-and-cash-discounts