Free Essay

Speaking Accurately or Listening Actively

In:

Submitted By lena1995
Words 4319
Pages 18
Chapter 8 Trade and Cash Discounts
Section Exercises
8-1, p. 267
1. +400(0.3) = +120

2. +400 - +120 = +280

3. +14.67(20) = +293.40 total cost
+293.40(0.2) = +58.68 trade discount

4. 30(6) = 180 one-gallon units
180(+2.18) = +392.40 total cost
+392.40(0.18) = +70.63 trade discount

5. +293.40 - +58.68 = +234.72 net price

6. +392.40 - +70.63 = +321.77

7. Net price rate = 100% - 20% = 1 - 0.2 = 0.8
+293.40(0.8) = +234.72 net price
Results are the same as Exercise 5.

8. Net price rate = 100% - 18% = 1 - 0.18 = 0.82
+392.40(0.82) = +321.77
Results are the same as Exercise 6.

9. Answers will vary.

10. Net price rate method. The net price can be found using a direct series of calculations.

11.
Invoice No. 2501
October 15, 20XX
Qty.
15
10
30

Item
Notebooks
Looseleaf paper
Ballpoint pens

Unit price
List price
$1.50
$22.50
0.89
8.90
0.79
23.70
Total list price
55.10
40% trade discount 22.04
Net price
$33.06

Notebooks: 15(+1.50) = +22.50
Looseleaf paper: 10(+0.89) = +8.90
Ballpoint pens: 30(+0.79) = +23.70
Total list price = +22.50 + +8.90 + +23.70 = +55.10
40% trade discount = +55.10(0.4) = +22.04
Net price = +55.10 - +22.04 = +33.06
12. Net price rate = 100% - 40% = 1 - 0.4 = 0.6
Net price = +55.10(0.6) = +33.06

13. Net price rate = 100% - 28% = 72%
Net price = 72%(+148,287)
= 0.72(+148,287)
= +106,766.64

8-2, p. 272
1. 100% - 7% = 93% = 0.93
100% - 10% = 90% = 0.9
100% - 5% = 95% = 0.95
0.93(0.9)(0.95) = 0.79515
100(+815.00) = +81,500 total list price of TVs
+81,500(0.79515) = +64,804.73 total net price of TVs
3. 100% - 12% = 88% = 0.88
100% - 10% = 90% = 0.9
100% - 6% = 94% = 0.94
0.88(0.9)(0.94) = 0.74448
+800(0.74448) = +595.58

2. 100% - 5% = 95% = 0.95
100% - 5% = 95% = 0.95
100% - 10% = 90% = 0.90
(0.95)(0.95)(0.9) = 0.81225
36(+1,599.00) = +57,564 total list price
+57,564(0.81225) = +46,756.36 total net price
4. 100% - 25% = 75% = 0.75
100% - 15% = 85% = 0.85
100% - 10% = 90% = 0.90
0.75(0.85)(0.90) = 0.57375
1.0000 - 0.57375 = 0.42625
+2,200(0.42625) = +937.75

Copyright © 2014 Pearson Education, Inc.

Chapter 8

69

5. 100% - 10% = 90% = 0.9
100% - 10% = 90% = 0.9
100% - 10% = 90% = 0.9
0.9(0.9)(0.9) = 0.729
1 - 0.729 = 0.271
+269(0.271) = +72.90 trade discount
+269(0.729) = +196.10 net price

6. 100% - 5% = 95% = 0.95
100% - 5% = 95% = 0.95
100% - 8% = 92% = 0.92
0.95(0.95)(0.92) = 0.8303
1 - 0.8303 = 0.1697
+395(0.1697) = +67.03

7. 100% - 5% = 95% = 0.95
100% - 5% = 95% = 0.95
100% - 10% = 90% = 0.9
0.95(0.95)(0.9) = 0.81225
+189.97(0.81225) = +154.30
100% - 5% = 95% = 0.95
100% - 10% = 90% = 0.9
100% - 10% = 90% = 0.9
0.95(0.9)(0.9) = 0.7695
+210(0.7695) = +161.60
The better deal is $189.97 with discounts of 5/5/10.

8. 100% - 8% = 92% = 0.92
100% - 8% = 92% = 0.92
100% - 5% = 95% = 0.95
0.92(0.92)(0.95) = 0.80408
+1,899(0.80408) = +1,526.95
100% - 10% = 90% = 0.9
100% - 5% = 95% = 0.95
100% - 5% = 95% = 0.95
0.9(0.95)(0.95) = 0.81225
+2,000(0.81225) = +1,624.50
+1,624.50 + +50 shipping = +1,674.50
The better deal is $1,899 with discounts of 8/8/5 and no shipping charge.

9. 100% - 5% = 95% = 0.95
100% - 10% = 90% = 0.9
100% - 10% = 90% = 0.9
0.95(0.9)(0.9) = 0.7695
+1,899(0.7695) = +1,461.28
100% - 5% = 95% = 0.95
100% - 5% = 95% = 0.95
100% - 10% = 90% = 0.9
0.95(0.95)(0.9) = 0.81225
+1,800(0.81225) = +1,462.05
The better deal is $1,899 with discounts of 5/10/10.

10. 100% - 20% = 80% = 0.8
100% - 10% = 90% = 0.9
100% - 5% = 95% = 0.95
0.8(0.9)(0.95) = 0.684
1 - 0.684 = 0.316 single discount equivalent for
20/10/5 series
Trade discount = 0.316(+1,000) = +316
100% - 5% = 95% = 0.95
100% - 10% = 90% = 0.9
100% - 20% = 80% = 0.8
0.95(0.9)(0.8) = 0.684
1 - 0.684 = 0.316 single discount equivalent for
5/10/20 series
Trade discount = 0.316(+1,000) = +316
Both series result in the same trade discount. The discount series can be listed in any order because of the commutative property of multiplication.

11. 100% - 15% = 85% = 0.85
100% - 12% = 88% = 0.88
100% - 5% = 95% = 0.95
0.85(0.88)(0.95) = 0.7106
Net price = +460(0.7106) = +326.88
100% - 10% = 90% = 0.9
100% - 10% = 90% = 0.9
100% - 5% = 95% = 0.95
0.9(0.9)(0.95) = 0.7695
Net price = +410(0.7695) = +315.50
The better deal is $410 with a discount series of 10/10/5.

12. Complement of discount:
100% - 8% = 92% = 0.92
100% - 8% = 92% = 0.92
Net decimal equivalent = (0.92)(0.92) = 0.8464
Net price = 0.8464(+289) = +244.61
Trade discount = +289 - +244.61 = +44.39

8-3, p. 282
1. Invoice paid within 2% discount period.
+540(0.02) = +10.80 cash discount

2. +540 - +10.80 = +529.20 net amount

3. Invoice paid within 4% discount period.
1 - 0.04 = 0.96 complement
+450(0.96) = +432 net amount

4. Invoice paid within 1% discount period.
1 - 0.01 = 0.99 complement
+450(0.99) = +445.50 net amount

70

Chapter 8

Copyright © 2014 Pearson Education, Inc.

5. No cash discount is allowed. $450 is due.

6. Bill paid within 2% discount period.
1 - 0.02 = 0.98 complement
+648(0.98) = +635.04 net amount

7. Bill paid within 1% discount period.
1 - 0.01 = 0.99 complement
+648(0.99) = +641.52 net amount

8. No cash discount is allowed. $648 is due.

9. 3% interest penalty is charged.
+648(0.03) = +19.44 interest penalty
+648 + +19.44 = +667.44 total bill

10. June 18 payment is within the 3% discount period.
+1,296.45(0.03) = +38.89 discount

11. +1,296.45 - +38.89 = +1,257.56 net amount

12. The bill is paid within 2% discount period.
1 - 0.02 = 0.98 complement
+800(0.98) = +784 net amount

13. The bill is paid within 2% discount period.
1 - 0.02 = 0.98 complement
+1,250(0.98) = +1,225 net amount

14. No cash discount is allowed. $798.53 is due.

15. May 4 is within the 3% discount period.
1 - 0.03 = 0.97 complement
+493(0.97) = +478.21 net amount

16. October 27 is within the 2% discount period.
1 - 0.02 = 0.98 complement
+900(0.98) = +882 net amount

17. No cash discount is allowed. $900 is due.

18. June 12 is within the 2% discount period.
1 - 0.02 = 0.98 complement
+5,835(0.98) = +5,718.30 net amount

19. No cash discount is allowed. $392.34 is due.

20. $400 payment is within the 3% discount period.
1 - 0.03 = 0.97 complement
400
= +412.37 amount credited to account
0.97
+730 - +412.37 = +317.63 outstanding balance

21. $2,000 payment is within the 3% discount period.
1 - 0.03 = 0.97 complement
+2,000
= +2,061.86 amount credited to account
0.97
+3,982.48 - +2,061.86 = +1,920.62 outstanding balance 22. $2,000 payment is within the 2% discount period.
1 - 0.02 = 0.98 complement
+2,000
= +2,040.82 amount credited to account
0.98
+2,983 - +2,040.82 = +942.18 outstanding balance

23. Better Bilt Bicycles paid the freight to the freight company. 24. Joseph Denatti pays the freight to the freight company.

25. The vendor pays the shipping company and adds the charge to Charlotte’s invoice.

26. FOB shipping point: Buyer pays shipping charges to the freight company upon receipt of the merchandise. Prepay and add: Vendor pays shipping charges to the freight company and adds these charges to the invoice. The receiving company pays shipping charges to the vendor.

Exercises Set A, p. 287
1. Trade discount = +300(15%) = +300(0.15) = +45.00
2. Trade discount = +149.50(20%) = +149.50(0.2) = +29.90
3. Trade discount = +49.97(12%) = +49.97(0.12) = +6.00
4. +279 - +49 = +230
5. +399 - +91.77 = +307.23
6. Trade discount = +25(5%) = +25(0.05) = +1.25

Net price = +25 - +1.25 = +23.75

7. Trade discount = +199.95(2%) = +199.95(0.02) = +4.00

Net price = +199.95 - +4.00 = +195.95

8. Trade discount = +100(17%) = +100(0.17) = +17.00

Net price = +100 - +17 = +83.00

Copyright © 2014 Pearson Education, Inc.

Chapter 8

71

Net price = +329(0.96) = +315.84

9. Complement = 100% - 4% = 96%
10. Complement = 100% - 6% = 94%

Net price = +399.98(0.94) = +375.98

11. Complement = 100% - 11% = 89%

Net price = +1,595(0.89) = +1,419.55

12. Decimal equivalents of complements = 0.8 and 0.9; net decimal equivalent = 0.8(0.9) = 0.72; net price = 0.72(+200) = +144
13. Decimal equivalents of complements = 0.9, 0.85, and 0.9; net decimal equivalent = 0.9(0.85)(0.9) = 0.6885; net price = 0.6885(+1,399.99) = +963.89
14. Decimal equivalents of complements = 0.85 and 0.95; net decimal equivalent = 0.85(0.95) = 0.8075; net price = 0.8075(+99.99) = +80.74
15. % form = 0.765(100%) = 76.5%

Single discount equivalent = 100% - 76.5% = 23.5%

16. % form = 0.6835(100%) = 68.35%

Single discount equivalent = 100% - 68.35% = 31.65%

17. % form = 0.7434(100%) = 74.34%

Single discount equivalent = 100% - 74.34% = 25.66%

18. 0.8(0.9) = 0.72 = 72% net decimal equivalent in percent form 100% - 72% = 28% single discount equivalent 19. 0.9(0.95)(0.98) = 0.8379 = 83.79% net decimal equivalent in percent form
100% - 83.79% = 16.21% single discount equivalent

20. 0.9(0.95) = 0.855 = 85.5% net decimal equivalent in percent form 100% - 85.5% = 14.5% single discount equivalent 21. +1,025(0.1) = +102.50

22. +165(0.12) = +19.80

23. +35(30)(0.09) = +94.50

24. 30(+22) = +660 slacks; 40(+37) = +1,480 jumpers
+660 + +1,480 = +2,140 total list price
+2,140(0.11) = +235.40 trade discount

25. 0.9(0.95) = 0.855 net decimal equivalent
+4(0.855) = +3.42 net price

26. 0.9(0.95)(0.95) = 0.81225 net decimal equivalent
+800(0.81225) = +649.80 net price of printer
0.95(0.9)(0.95) = 0.81225 net decimal equivalent
+250(0.81225) = +203.06 net price of desk chair
+649.80 + +203.06 = +852.86 total net price

27. +58.95 - +5.90 = +53.05
+60 - +9.45 = +50.55 better deal

28. 3% discount

29. +270(0.02) = +5.40

30. +650(0.98) = +637

31. +5,298(0.97) = +5,139.06

+800
= +824.74
0.97
Balance paid on July 12 = +1,200 - +824.74 = +375.26
Total paid = +800 + +375.26 = +1,175.26

32. Amount credited =

Exercises Set B, p. 289
1. 48(0.10) = +4.80

2. 100(0.12) = +12

3. 425(0.15) = +63.75

4. +24.62 - +5.93 = +18.69

5. +0.89 - +0.12 = +0.77

6. Trade discount: +1,263(0.12) = +151.56
Net price: +1,263 - +151.56 = +1,111.44

7. Trade discount: +27.50(0.03) = +0.83
Net price: +27.50 - +0.83 = +26.67

8. Trade discount: +8,952(0.18) = +1,611.36
Net price: +8,952 - +1,611.36 = +7,340.64

9. Complement: 100% - 5% = 95%
Net price: +421(0.95) = +399.95
11. Complement: 100% - 8% = 92%
Net price: +3,983(0.92) = +3,664.36

72

Chapter 8

10. Complement: 100% - 3% = 97%
Net price: +721.18(0.97) = +699.54
12. Decimal equivalents of complements: 0.9(0.93)(0.95)
Net decimal equivalent: 0.9(0.93)(0.95) = 0.79515
Net price: 0.79515(+50) = +39.76
Copyright © 2014 Pearson Education, Inc.

13. Decimal equivalents of complements: 0.8(0.85)(0.95)
Net decimal equivalent: 0.8(0.85)(0.95) = 0.646
Net price: 0.646(+35) = +22.61

14. Decimal equivalents of complements: 0.95(0.9)(0.9)
Net decimal equivalent: 0.95(0.9)(0.9) = 0.7695
Net price: 0.7695(+2,834) = +2,180.76

15. Net decimal equivalent in percent form: 82%
Single discount equivalent in percent form:
100% - 82% = 18%

16. Net decimal equivalent in percent form: 65.02%
Single discount equivalent in percent form:
100% - 65.02% = 34.98%

17. Net decimal equivalent in percent form: 75.8%
Single discount equivalent in percent form:
100% - 75.8% = 24.2%

18. 0.7(0.8)(0.95) = 0.532 = 53.2%
100% - 53.2% = 46.8%

19. 0.9(0.9)(0.95) = 0.7695 = 76.95%
100% - 76.95% = 23.05%

20. 0.8(0.85) = 0.68 = 68%
100% - 68% = 32%

21. +6.25(0.06) = +0.375 or +0.38

22. +10,851(0.125) = +1,356.375 or +1,356.38

23. +1,480 - +301 = +1,179

24. 10(+5) = +50 for writing paper; 200(+3) = +600 for greeting cards
+50 + +600 = +650
+650(0.15) = +97.50

25. +800(0.75)(0.9)(0.95) = +513 net price

26. Desks: 5(+400)(0.8)(0.9)(0.9) = +1,296
Bookcases: 10(+200)(0.9)(0.8)(0.9) = +1,296
+1,296 + +1,296 = +2,592 net price

27. +200(0.88) = +176
+190(0.9) = +171 better deal

28. No, to receive the 2% discount, she had to pay on or before September 13.

29. 1% discount, +50(0.01) = +0.50 cash discount

30. 2% discount if paid on or before January 18; therefore,
(a) Cash discount: +328(0.02) = +6.56
Net amount: +328 - +6.56 = +321.44
(b) No discount, net amount is $328.

31.

+500
= +515.46 amount credited
0.97
+826 - +515.46 = +310.54 outstanding balance

Practice Test, p. 291
1. +550(0.2) = +110 trade discount

2. +560 - +27.50 = +532.50 net price

3. +36.55(0.2) = +7.31 trade discount
+36.55 - +7.31 = +29.24 net price

4. +250(0.2) = +50 discount
+250 - +50 = +200 net price
+240(0.1) = +24 discount
+240 - +24 = +216 net price
$250 less 20% is the better deal.

5. +70(0.8)(0.9)(0.95) = +47.88 net price

6. Net decimal equivalent: 0.8(0.8)(0.9) = 0.576
Single discount equivalent: 100% - 57.6% = 42.4%

7. 0.8(0.9)(0.95) = 0.684 net decimal equivalent

8. 100% - 15% = 85%

9. 20(+4) + 400(+0.50) = +280, +280(0.15)
= +42 trade discount

10. 30(+40) = +1,200 total list price
+1,200(0.1) = +120 discount
+1,200 - +120 = +1,080 net price

11. (+200)(0.01) = +2 cash discount

12. 3% discount if she pays on or before September 11.

13. +400(0.02) = +8 cash discount
+400 - +8 = +392 net amount

14. 2% discount if paid on or before May 10; therefore,
Discount = +300(0.02) = +6.00
Net amount = +300 - +6 = +294.00

15. $400; no discount if paid after December 21.

16. Zing: +30(0.9)(0.9) = +24.30 net price
Other: +31(0.9)(0.9)(0.95) = +23.85 net price better deal

Copyright © 2014 Pearson Education, Inc.

Chapter 8

73

17. 20(+14)(0.9)(0.8) = +201.60 net price for dartboards
10(+40)(0.8)(0.9) = +288 net price for bowling balls
+201.60 + +288 = +489.60 total net price

18.

+300
= +306.12 credited to account
0.98
+745 - +306.12 = +438.88 outstanding balance

Partial payment
$3,500
=
= $3,571.43
Complement of rate
(1 - 0.02)
Outstanding balance = Net price - Amount credited
= $5,893.21 - $3,571.43 = $2,321.78
20. Manufacturer

19. Amount credited =

Critical Thinking, p. 293
1. The consumer pays the list price for an item. The retailer pays the net price to the supplier or vendor.

2. Examples will vary. Use $500 as the list price.
0.8(0.9)(+500) = +360
0.3(+500) = +150; +500 - +150 = +350
In the series, a 20% discount is found on the entire amount, but a 10% discount is found only on the amount remaining after the 20% discount. In the single discount,
30% is applied to the entire amount.

3. It is advantageous to use the net decimal equivalent to find the net price directly when you don’t need to know the trade discount.

4. When the discount rate is multiplied by the dollar amount of the payment, this assumes the dollar amount of the payment is the base of the percentage problem. The amount credited should be the base.

5. The complement of a single discount rate on an item represents the rate of the net price of the item or the percent of the original price that is paid after the discount is taken.

6. Finding 1% of an invoice amount is the same as multiplying the invoice amount by 0.01. Recall the shortcut for multiplying by 0.01 is to shift the decimal two places to the left. A shortcut for finding the discount on an invoice is to shift the decimal two places to the left.
Example: What is a 1% discount on an invoice amount of $386? Shift the decimal two places to the left and the discount is $3.86.

7. Add 60 days to the current date. For example, 60 days from June 20 would be “June 80.” Subtract the number of days in June. 80 - 30 = 50. This advances the month and day to “July 50”. Subtract the number of days in July. 50 - 31 = 19. This gives a date of
August 19. Other ways to calculate days will be introduced in Chapter 11.

8. To find a 2% discount on an invoice amount, find the amount of a 1% discount and double it. Example: What is a 2% discount on an invoice amount of $386? The 1% amount is $3.86, so a 2% discount is 2(+3.86), or $7.72.

9. To estimate a discount on an invoice amount, find 1% of the invoice amount and then round it to the nearest
10 dollars, 1 dollar, or 10 cents (depending on the size of the invoice amount). Multiply the estimated amount by the rate (number only) indicated in the discount terms.
Example: Estimate a 7% discount on an invoice amount of $2,956. To find 1%, shift the decimal two places to the left. This is $29.56. Then round to $30 and multiply by 7.
+30(7) = +210. The estimated discount is $210. The actual discount is +2,956(0.07) or $206.92.

10. It is important to be able to estimate the amount of discount to determine if the discount is sufficient to justify paying the invoice early and as a mental check to determine whether the calculations for finding the discount are reasonable. Challenge Problem p. 294
1. Amount of invoice - shipping charge = cost of units
+2,386.50 - +32 = +2,354.50
Cost of units - merchandise returned = amount eligible for discount
+2,354.50 - +350 = +2,004.50

74

Chapter 8

Copyright © 2014 Pearson Education, Inc.

Net cost of units = list price * complement of discount
= +2,004.50(98%) = +1,964.41
Net amount payable = net cost of units + shipping charges
= +1,964.41 + +32
= +1,996.41
.
2. +691.62(0.98) = +677.79; +677.79(1.05) = +711.68
+691.62(0.99) = +684.70; +684.70(1.05) = +718.94
$726.20, no discount
INVOICE DATE

TERMS

02/27/XX
LINE
NO.

2/10, 1/15, n/30
MANUFACTURER
PRODUCT NUMBER

DATE OF ORDER

ORDERED BY

PHONE NO.

02/27/XX
QTY.
ORD.

803-000-4488

QTY.
B.O.

QTY.
SHP.

U/M

REMIT
TO

HARPER
General Accounting Office

UNIT
PRICE

DESCRIPTION

EXTENDED
AMOUNT

001

REMYY370/02253

3

0

3

EA TONER, F/ROYAL TA210 COP 1

11.90

35.70

002

Sk 1230M402

5

2

3

PK CORRECTABLE FILM RIBBON

10.95

32.85

003

JRLM01023

10

0

10

PK COVER-UP CORRECTION TAPE

004

rTu123456

9

0

9

CS PAPER, BOND, WHITE 8 1/2 x 11

DATE
REC'D.

01460900001
OUR ORDER NO.

$691.62
MDSE. TOTAL

5%
TAX RATE

$34.58
TAX AMOUNT

$0.00
FREIGHT AMOUNT

9.90

99.00

58.23

524.07

TOTAL
INVOICE
AMOUNT

$726.20

Case Studies
8-1, p. 295
1. 20,000(+3) = +60,000
5%(+60,000) = 0.05(+60,000) = +3,000
On the 20,000-piece order at $3 each, the $60,000 sale will earn a rebate of $3,000.
+60,000 - +3,000 = +57,000
+57,000 , 20,000 pieces = +2.85 per piece
The price per piece is $2.85.

2. 22,000(+3) = +66,000 total price of sale
22,000(+0.18) = +3,960 total rebate
+3,960 , +66,000 = 0.06 = 6% discount

3. 30,000(+3) = +90,000 total sale
30,000(+0.18) = +5,400 rebate
1
2 % = 0.005
+90,000 - +5,400 = +84,600 net amount before cash discount +84,600(0.005) = +423 cash discount
+5,400 + +423 = +5,823 rebate and discount together
+90,000 - +5,823 = +84,177 total price of order after rebate and cash discount

4. 0.17 , 3 = 0.0566666667
0.0566666667(100) = 5.7% percentage rebate (rounded)
Other Image Manufacturing customers who pay a higher price for the same or higher volume may claim unfair trade practices. But Image Manufacturing’s marketing manager may argue that the 331% increase in volume
3
from this customer is worth the 5.7% rebate incentive.

8-2, p. 296
1. 100% - 7% = 93% or 0.93; 100% - 5% = 95% or 0.95; 100% - 2.5% = 97.5% or 0.975
(0.93 * 0.95 * 0.975) = 0.8614125, the net decimal equivalent
$3.353 * 0.8614125 = +2.8883161, the net price after the discount series
2. 100% - 10% = 90% or 0.9; 100% - 7% = 93% or 0.93; 100% - 4% = 96% or 0.96
(0.9 * 0.93 * 0.96) = 0.80352, the net decimal equivalent
$3.561 * 0.80352 = $2.8613347, the net price after the discount series—which is lower than his current supplier
3. Half take advantage of the discount: $25,000 * 0.5 = $12,500; $12,500 * 0.02 = $250 total discount savings; 5% incur service charge: $25,000 * 0.05 = $1,250; $1,250 * 0.01 = $12.50 total penalty payments
4. $25,000 * 0.25 = $6,250; $6,250 * 0.02 = $125 total discount savings; $25,000 * 0.20 = $5,000; $5,000 * 0.01 = $50 total penalty payments; most of his customers are paying late in the month or are overdue, which may affect his cash flow; another big concern is the sharp increase in delinquencies—some of which may be costly or difficult to collect. Rob could consider new terms, such as 3/15, net/30, with a 1.5% penalty: customers would have more incentive to pay earlier or on time.
Copyright © 2014 Pearson Education, Inc.

Chapter 8

75

8-3, p. 296
1. Supplier 1
+300(0.20) = +60
+300 - +60 = +240
+240(0.10) = +24
+240 - +24 = +216
+216(0.05) = +10.80
+216 - +10.80 = +205.20 net price or +300(0.8)(0.9)(0.95) = +205.20 net price
Parma would save $3.87 with supplier 2.

Supplier 2
+300(0.18) = +54
+300 - +54 = +246
+246(0.12) = +29.52
+246 - +29.52 = +216.48
+216.48(0.07) = +15.15
+216.48 - +15.15 = +201.33 net price or +300(0.82)(0.88)(0.93) = +201.33
+205.20 - +201.33 = +3.87 difference in the net price of the two suppliers 2. Supplier 1: (0.80)(0.90)(0.95) = 0.684
Supplier 2: (0.82)(0.88)(0.93) = 0.671088 (rounded)
0.316(+300) = +94.80
3. Supplier 1: 1 - 0.684 = 0.316;
Supplier 2: 1 - 0.671088 = 0.328912;
0.328912(300) = +98.67 (rounded)
4. Due by Sept 26: +250(0.98) = +245

Amount saved by paying early: +250 - +245 = +5

5. If the purchase is made on September 16, the offer expires on October 10.
If the purchase is made on September 26, the offer expires on November 10.
A discount rate of 2/10, n/30 would mean that the discount period for a September 16 purchase would expire on September
26. For a September 26 purchase the discount period would expire on “September 36” or October 6. For either purchase date the 2/10 EOM terms would give the student longer to qualify for the discount.

76

Chapter 8

Copyright © 2014 Pearson Education, Inc.

Similar Documents

Premium Essay

Management Essay Questions

...and gossip in a given organization. “80% of the topics are business related, and 70%-90% of the details are typically accurate.”(Daft 13) You should not try to eliminate it the grapevine because it will always exist, so merely ignoring it or pretending like it is not there will not be beneficial. Keeping your employees well informed of what is going on with the company will eliminate possible hazards from misinformation that comes from the grapevine. You can also use the Grapevine as an information source to find out concerns your employees might have. 3. Is speaking accurately or listening actively the more important communication skill for managers? Defend your position. For managers speaking accurately takes priority over active listening. A manager needs to communication accurately to his employees and tell them what he needs them to do for the business to succeed. For employees active listening takes...

Words: 1137 - Pages: 5

Premium Essay

Effective Listening Skills

...Effective Listening Skills Student Name Course/Number Date Instructor Name Introduction Listening is defined by the International Listening Association as the process of receiving and constructing meaning from verbal or non verbal messages, and then offering a response (Cheesebro, O’Connor, & Rios, 2010). This implies that to offer accurate responses in various situations including during conflict resolution, one must be able to receive the information accurately through effective listening in order to draw meaning and respond to the parties in question appropriately (Shermerhon, Hunt, & Osborn, 2004). It is through effective listening to a party that one is able to grasp the intended meaning and offer a relevant response. Effective listening skills are one of the main determinants of the progress of teaching, informing, and conflict resolution. However, various factors need to be put in place to ensure that listening enhances the quality of communication among the parties involved. It requires effective coordination between the brain and the ear as well as proper concentration by the parties involved. This study presents listening strategies employed in effective conflict resolution. Listening Process The starting point is the absorption of information through the ear which is the transmitting device to the brain as indicated below. Source: Cheesebro, T., O’Connor, L., & Rios, F. (2010). For listening to occur, hearing must first take place. While...

Words: 2191 - Pages: 9

Premium Essay

Demonstrative Communication

...smile would be interpreted as a positive facial expression, while a frown would be interpreted as a negative facial expression, but grins can also be either positive or negative. Someone's voice and expressions are a very powerful tool for communicating when used properly and a friendly tone of voice can make them seem more approachable and kind. All these things can have a huge impact on the message you are sending to the other person. Depending on the way a person comes across to the recipient, the recipient could react positive or negative. An imbalance in any of these could result in ineffectiveness of demonstrative communication. That is why it is very important that everyone pays attention to their demonstrative communication by listening and responding to the feedback that they receive from the intended recipient. Demonstrative communications can be both effective and ineffective. If a person makes sure that he or she pays attention to the facial expression that they give, the body language they use, and the tone they use when talking to someone, he or she could help to accentuate a message in a positive way. If, however, someone doesn't pay attention, his or her gestures or tone of voice, their effectiveness of a message could prove to be counterproductive. The little things that we may not think about can be portrayed to make someone else feel that they are bothering people. For example, if someone is talking to an...

Words: 957 - Pages: 4

Free Essay

Effective Listening Strategies Paper

...Effective Listening Strategies Paper LaDonna Landry BSHS 385 Audra Stinson June 15, 2015 Effective Listening Strategies Paper Thinking and acting in ways that connect you to a person that is speaking is attentive listening. The benefits of listening are codependent and synergistic not many people are attentive listeners but if they can possess the skill of listening there are many benefits. Some benefits are respect, airtime, information, increased likability, better relationship and clarity. When you are giving you full listening attention you are showing respect and in turn gain the respect of the speaker. If you listen first to the speaker usually the speaker will return the favor. I say usually because it depends upon the individual and what may be going on with them such as self-absorption, stress or other reason that they might not lend their ear as the listener has done. Attentive listening helps to get information so that you can learn more about the person. The more you know about the individual the more you can do to assist them. People like to be listened to the more you listen to people the more you like them and the more you listen to the person talking the more they began to like you just for the fact that you listened. Listening creates a feeling of goodwill in relationships. If you are to listen to others problems non-judgmentally this gives the individual a chance to hear themselves and possibly find their own solution to their problem. Listening...

Words: 994 - Pages: 4

Free Essay

Effective Workplace Communication

...Listening and Effective Workplace Communication James Humes, a former presidential speech writer, stated that, "the art of communication is the language of leadership" (Leading Thoughts, 2010). Communication is an essential process that is common in the workplace.  Everyone in the workplace especially leaders must communicate with others.  Ideas, conversations, disagreements, and commitments can all be exchanged through communication.  Anyone can communicate but it takes discipline and skills to effectively communicate.   These skills can include feedback, presentation, non-verbal communication, and listening. Listening is the most valuable skills to effective workplace communication because it enhances job effectiveness, relationships and responses. Most people equate hearing with listening and they do not take time to improve their listening skills. To be an effective communicator a person must understand the differences between hearing and listening. Listening is an active process that requires more effort than it takes to hear. “Listening is the conscious desire to determine the meaning of what is heard” (Behera, 2010). Hearing a message rather than listening could cause a person to agree to something that they did not intend to. An active listener participates in the communication process by being focused on the message that is being communicated. The in-depth process of listening will result in a verbal or non-verbal response to let the communicator know that...

Words: 1325 - Pages: 6

Premium Essay

Principles of Communication

...information through any number of channels.  Whether one is speaking informally to a colleague, addressing a conference or meeting, writing a newsletter article or formal report, the following basic principles apply: * Know your audience. * Know your purpose. * Know your topic. * Anticipate objections. * Present a rounded picture. * Achieve credibility with your audience. * Follow through on what you say. * Communicate a little at a time. * Present information in several ways. * Develop a practical, useful way to get feedback. * Use multiple communication techniques. 1. CONCENTRATE ON WHAT OTHERS ARE SAYING. When listening to someone, do you often find yourself thinking about a job or task that is nearing deadline or an important family matter? In the middle of a conversation, do you sometimes realize that you haven't heard a word the other person has said? Most individuals speak at the rate of 175 to 200 words per minute. However, research suggests that we are very capable of listening and processing words at the rate of 600 to 1,000 words per minute. An internal auditor's job today is very fast and complex, and because the brain does not use all of its capacity when listening, an auditor's mind may drift to thinking of further questions or explanations rather than listening to the message at hand. This unused brainpower can be a barrier to effective listening, causing the auditor to miss or misinterpret what others are...

Words: 1248 - Pages: 5

Premium Essay

Demonstrative Communication Paper

...Demonstrative Communication John Fisher BCOM/275 September 25, 2011 Dorothy Chavez Demonstrative Communication Demonstrative communication is a nonverbal communication skill set and if executed properly is a two-way process between sender and receiver. The sender through nonverbal communication must send the correct message, and the listener must receive and interpret the message correctly. Several types of demonstrative communication are facial expressions, gestures, and voice tonal delivery. Demonstrative communication, as with any form of communication can be positive, negative, effective, and ineffective for both the sender and receiver. Key to this process is the audience listening and responding appropriately to ensure the messenger receives valuable feedback. Communicating is vital to daily life and practicing effective communication will ensure the proper message is sent and received. Facial expressions are the most common form of demonstrative communication. Nayad 2011, “Research estimates that body language, including facial expressions, account for 55 percent of all communication” (Physical Nonverbal Communication, p. 1). A positive facial expression example is as simple genuine smile of happiness. Of course interpreting variances of the smile can be positive and even negative dependent upon interpretation. For example, the interpretation of a grin can be seen as a sign of arrogance dependent on the connotation and is an example of a negative facial...

Words: 976 - Pages: 4

Free Essay

Lesson Plan

...Standards Speaking, Listening, Learning: working with children in Key Stages 1 and 2 Professional development materials Primary teachers and headteachers Status: Recommended Date of issue: 04-2004 Ref: DfES 0163-2004 ❚❙❘ Contents DVD – extracts from the video Speaking, Listening, Learning: working with children in Key Stages 1 and 2 (DfES 0628-2003) Introduction Planning meeting Professional development modules 1 Speaking and listening: concepts, skills and knowledge 2 Progression in speaking and listening 3 The role of the teacher in developing effective interaction and identifying and developing language features 4 Organising and managing speaking and listening 5 Speaking and listening: drama Inside front cover 3 5 7 19 35 49 55 This booklet contains suggestions for a planning meeting for embedding speaking and listening across the primary curriculum, and five professional development modules to support the teaching of speaking and listening in primary schools. The planning meeting will require teachers in preparation and follow-up. The professional development modules require time for teachers to read, plan, try out some teaching, watch others teach and discuss. Each module also has a staff meeting lasting between 60 and 75 minutes. Professional development for speaking and listening in mathematics will be available in 2005. © Crown copyright 2004 DfES 0163-2004 Professional development materials 2 Speaking, Listening, Learning: working...

Words: 24680 - Pages: 99

Free Essay

Alignment of Academic Standards with Ell Proficiency Standards

...the government requires states to include English Language Learning or ELL students in state assessments and assess students language proficiency with valid, reliable assessments in the areas of oral language and reading and writing skills, but more specifically comprehension of speaking, reading, listening, and writing the English language. Also included in the NCLB Act are the provisions that these assessments given must also assist in assessing students in their attainment of the states academic achievement standards. (NCLB, 2001) With the development and creation of these federal standards being implemented into the educational system a new approach needed to be maid and assessed in how states and schools were acclimating and appropriately assessing English Language Learners. With the ever so growing population of non-English speaking students being implemented into the government regulated educational systems over the last several decades something needed to change. Even just the population and growth of English Language Learners has increased by over 20% in just the past several years and is only expected to increase with time. It is clearly stated that children whom are not English speaking or those that are disabled or disadvantaged in any way shape or form still have the right to a fair and just education, just like the rest. Because of the wide span of English language learning students over the United States something that would...

Words: 1348 - Pages: 6

Premium Essay

Communication

...Effective and Ineffective Demonstrative Communication Effective and Ineffective Demonstrative Communication Relationships, whether they are professional relationships or are personal relationships, they are built on the effective use of communication. Dictionary.com describes communication as “The act or process of communicating; fact of being communicated. The imparting or interchange of thoughts, opinions, or information by speech, writing, or signs” (Dictionary.com, 2011). Something imparted, interchanged, or transmitted.” Communication is demonstrated both verbally and non-verbally, it involves listening by both parties and responding to each other and can be both effective and ineffective. Verbal Communication Verbal communication continues to be one of the most important ways that we as humans communicate with each other. It is at the heart of our connection and interaction with others. Verbal communication and the words we choose to use to illustrate our point of view or argument have emotive meaning. Emotive meaning elicits images, emotional connections, and strong feelings. This type of communication is used to persuade the receiver in the conversation to a specific point of view. Most of us use persuasion to highlight our argument and impress upon the receiver our point of view. It is therefore important to be critical thinkers when we are the receiver of the communication...

Words: 785 - Pages: 4

Free Essay

First Entry on the School

...able to make sense of as well as engage in advanced reading, writing, listening, and speaking and as educators we are challenged with the task of coming up with proper strategies to meet these needs of our students in all subject areas. There are a few strategies that I have used in the past to incorporate balanced literacy into classroom instruction. The first method I love incorporate is the read -aloud method. I often times read out loud to the classroom as well as in small groups so that I can model the correct strategies and behaviors of students. For example, I model reading behaviors, such as handling a book and reading from top to bottom and left to right as well as making sure I expose students to books with rhyming or predictable patterns for critical thinking and comprehension. From books, articles and even instructions I make sure that I read with enthusiasm, rhythm, and the proper intonation to keep students engaged and learning. A second strategy I have used is the shared reading strategy. This were I read along with the students so that students are able to discover new words and their meanings. While warming up to a book I usually engage my students by asking questions to prompt discussion. For example, if we are reading a book about a circus, I may ask “What do you think our new book is about?” “Who has been to the circus?” Using this particular strategy I am able to get students to actively participate in reading. They are ready to learn and some may even try...

Words: 1601 - Pages: 7

Premium Essay

Factors That Affects the English Speaking Competencies of the 2nd Year College Students of Tomas Claudio Colleges

...FACTORS THAT AFFECTS THE ENGLISH SPEAKING COMPETENCIES OF SELECTED SECOND YEAR COLLEGE STUDENTS OF TOMAS CLAUDIO COLLEGES S.Y. 2016-2017 An Undergraduate Thesis Presented to the Faculty of College of Education and Liberal Arts of Tomas Claudio Colleges Morong, Rizal In partial Fulfillment of the Requirements for the Degree Bachelor of Secondary Education Valerie Dianne S. Alimpolos Nicole Mae C. Barba Erdy T. Picones May 2016 Chapter 1 THE PROBLEM AND ITS BACKGROUND Introduction Education is a bridge from misery to hope. It is a tool for daily life in modern society. It is a bulwark against poverty, a platform for democratization, and a vehicle for the promotion of cultural and national identity. For everyone, everywhere, education is the road to human progress and the means through which every man; woman and child can realize his or her full potential. Teachers impart their knowledge by transmitting information through communication. Teachers will do a better job if they communicate well with their students. As stated in the 1987 constitution, Article XIV, section 7 which provide that: “For purpose of communication and instruction, the official languages of the Philippines are Filipino, until otherwise provided by law, English” Communication is a complex process, any stage of this process; things may go wrong, making the communication less effective. This constitution conveys that our...

Words: 3951 - Pages: 16

Premium Essay

Communication

...Registered Nurse and so it is vitally important that these skills are developed sufficiently so that they can be used in a safe and compassionate manner throughout practice (NMC competencies?). Within this assignment I will discuss my development of knowledge and skills in relation to the importance of communication and interpersonal skills during end of life care and how this contributes to my overall role as a nurse. Each year over half a million people die within the United Kingdom, with the majority of these deaths occurring within a hospital setting (Gomes and Higginson 2008). This statistic highlights how nurses have a significant role to carry out in the end stages of an individual’s life through continual clinical assessment, active listening and responding to expressions of loss, and recognition of ethical or spiritual concerns (Molloy et al. 2010). Communication is the foundation of end of life nursing care and by providing person-centred care through the formation of therapeutic relationships, nurses can provide care which is specifically tailored to meet the needs, wishes, norms and cultural values of the patient (Cribb and Tingle 2014). During my practice learning experiences I...

Words: 1380 - Pages: 6

Premium Essay

Business and Administration Assessment 1

...Unit one: Principles of personal responsibilities and working in a business environment Assessment You should use this file to complete your Assessment. • The first thing you need to do is save a copy of this document, either onto your computer or a disk • Then work through your Assessment, remembering to save your work regularly • When you’ve finished, print out a copy to keep for reference • Then, go to www.vision2learn.com and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number. Please note that this Assessment document has 15 pages and is made up of 7 Sections. Name: Section 1: Rights and responsibilities at work This section will help you to evidence Learning Outcome 1: Know the employment rights and responsibilities of the employee and employer |Learning objective |Place in Assessment | |1.1 Identify the main points of contracts of employment |Question 1 Page 1 | |1.2 Identify the main points of legislation affecting employers and employees |Question 2 Page 2 | |1.3 Identify where to find information on employment rights and responsibilities both |Question 3 Page 3 | |internally...

Words: 3920 - Pages: 16

Premium Essay

Effective Communication

...Effective Communication Paper Effective communication is important in our everyday lives and can be underestimated. In any field if there are misunderstandings it could affect several individuals. It would be hard to live in a world where no one could understand each other. It is important to acknowledge the tools and concepts that create communication as well as to have knowledge and comprehension of what communication is. In order to succeed in communication one must know the differences between listening and hearing. I will also discuss the channels of communication and the barriers that can cause ineffective communication. In order to communicate there must be two people involved; they are the sender and the receiver. In the criminal justice field this can be an officer and a citizen, an officer and detectives, an officer with another officer; or it can be multiple people in a group setting. There are five steps to communication: transmitting an idea, sending the idea through a medium, receiving the message, understanding the idea, and finally providing feedback to the message sender (Miller L.S. & Whitehead, J.T. 2011) Verbal and Nonverbal Communication In society individuals use verbal and nonverbal communication daily. In order for individuals to coexist and create culture to call their own these two forms of communication are necessary. There are about three components in communication; they are the sender, communication itself, and the receiver. In verbal communication...

Words: 1681 - Pages: 7