Example. How should goods be marked so that a dealer may give a discount of 20% and still make a profit of 15%?

SOLUTION. (100 % -20%) of marked price = 80% of marked price.

Cost +15% of cost = 115 % of cost.

.. 80% of marked price = 115% of cost.

The goods must be marked 433 % above cost.

44. (a) How should goods be marked so as to make a profit of 12% after deducting 20 % from the marked price? (b) How should they be marked so as to make a profit of 17% after deducting 10% from the marked price?

(c) How should they be marked so as to make a profit of 20% after deducting 25% from the marked price? (d) How should they be marked so as to make a profit of 10% after deducting 10% from the marked price?

(e) By taking 30% off the marked price a merchant neither gains nor loses. How were the goods marked?

COMMERCIAL DISCOUNTS

Commercial or trade discount is an allowance made on the list price of goods, or on the amount of a bill.

Discounts are reckoned as per cent.

Example. If watches are listed at $35 each, and a discount of 10% is allowed, what is the cost of one of the watches?

SOLUTION. 10% of $35 $3.50 the discount.

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$35-$3.50= $31.50.

.. the cost is $31.50.

EXERCISE 83

Find the cost when the list prices and rates of discount

In some cases several discounts are allowed. If there are two or more discounts, the first is reckoned on the list or catalogue price; the next is reckoned on the remainder after deducting the first discount; the third is reckoned on the second remainder; and so on.

Example 1. What is the cost, if the list price is $750, and discounts of 20 %, 15%, and 10% are allowed?

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SOLUTION. First discount = 20% of $750 of $750 = $150.

... the first remainder = $750 $150 = $600.

:

The second discount = 15 % of $600 = $90.

The third discount 10% of $510=$51.

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100% - 20% = 80%; 100% - 15% = 85%;
100%-10% = 90%.

90% of 85% of 80% of $750 = $459.

Example 2. What single discount is equivalent to the three discounts in the above example?

80 % x 85 % x 90%.8 x .85 x .9.612

100% 61.2% = 38.8% Ans.

EXERCISE 84

1. A suit of clothes is marked $70, and is sold with discounts of 25% and 10% for cash. Find the selling price.

2. On a bill of $900 two discounts of 20% and 15% are allowed. What is the net amount of the bill?

3. If goods are marked $175 and sold for $122.50, what is the discount?

4. On a bill of $1500 discounts of 25%, 15%, and 6% are allowed. Find the net cash amount of the bill. 5. A piano is listed at $450, with discounts of 20% 121%, and 10%. Find the cost price to the purchaser. 6. Find the cash value of a bill of $320 with discounts

of 15%, 10%, and 5%.

7. Suppose you were offered a single discount of 45 % or two discounts of 30% and 20%, which would you take? What would be the difference in a bill of $1000 ?

8. A dealer buys a quantity of goods marked $550, with a discount of 20%. If he sells the goods at 6%, above the marked price, what is his gain per cent ?

9. If I buy goods listed at $150, with a discount of 10%, and sell them at 12% above the marked price, find my gain per cent.

10. A bookseller buys 100 books marked $1.50 each, at a discount of 20% and sells them at the marked price. What is his gain per cent?

11. A bookseller bought 100 books at $1.25 each. He made a profit of 20% after giving a discount of 1. At what price did he mark each book, and what was his profit ?

12. Find the cost price in each case, if the list price and the rates of discount are as follows:

COMMISSION AND BROKERAGE

A very large part of the buying and selling of the produce of the country is done through commission merchants and brokers. A commission merchant is usually

intrusted with goods, such as butter, eggs, fruit, vegetables, etc., which are sent to him to be sold.

A broker finds purchasers for goods which may not be in his possession, but which he has been asked to sell. The distinction is not exact, but usually brokers deal in financial securities, such as stocks and bonds; while commission merchants deal in commodities, such as potatoes.

The fee which a commission merchant charges for his services, or which an agent charges who buys and sells land, or collects rents, is called a commission. The fee which a broker charges is called brokerage.

Commission and brokerage are usually reckoned as per cents of the buying price when goods or other commodities are bought, or of the selling price when they are sold.

The person who employs another person to buy, to sell, or to do other business is called a principal. The person who transacts business for a principal is called an agent. Commission merchants and brokers are agents.

Example 1. A commission merchant sold 400 boxes of oranges at $2.75 per box, charging 5% commission. What was his commission, and how much did he remit? The price of 400 boxes of oranges @ $2.75 $1100.

5% of $1100 $55, the commission.

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$1100 $55 $1045, amount remitted.

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Example 2. A commission merchant charges $94.50 for selling 4500 bushels of wheat. Rate of commission 21%. What is the price of wheat per bushel?

21%. Selling price = $94.50 x 40 = $3780.

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Selling price of one bushel = $788 = $.84.

4500

Example 3. A real estate agent remits to his principal $9788.75, being the amount of the sales of four city lots