# CLASS-8CONCEPT OF DISCOUNT

DISCOUNTS

Sometimes any shop keepers, organization or merchandise to create more sells, at the time of festivals or for the purpose of old stock clearance. We say that things are being sold at a discount.

Marked Price –

Please try to remember that, the marked price (MP) or listed price of an article is the price printed on the article itself or on the packaging or a slip attached to the articles and this marked price is also considered as market retail price or MRP. In general, the dealer sells articles or goods to the buyer at this price.

Discounts –

When a dealer sells an article for a price that is lower than the marked price or printed price, the difference between the marked price (MP) or printed price and the selling price (SP) is called a discount.

Discount = Marked Price (MP) – Sell Price (SP),

Or,   Sell Price (SP) = Marked Price (MP) – Discounts,

Or,   Marked Price (MP) = Discounts + Sell Price (SP)

Discount may be offered as a sum of money or a percentage of the marked price (MP), if a dealer allows a discount of a% on the marked price (MP) or printed price.

SP = MP – Discount = MP – a% of MP

a

=  MP - -------- X MP

100

a

So,  SP = ( 1 - -------- ) X MP

100

Sometimes a dealer allows a discount of a1% on the marked or printed price and then a2% on the reduced price. We say that successive discounts of a1% and a2% are available and the selling price (SP) is calculated by the following formula –

a1                  a2

SP = ( 1 - -------- ) ( 1 - --------- ) X MP

100                 100