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Chain Discounts

Chain Discounts. chain discount: series of discounts or when more than one discount is given – a discount on an already discounted price. For chain: 35% less 20% less 15% or 35/20/15. Does this mean 70% off? no 35% discount is deducted from the retail price to yield first net price

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Chain Discounts

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  1. Chain Discounts • chain discount: series of discounts or when more than one discount is given – a discount on an already discounted price

  2. For chain: 35% less 20% less 15% or 35/20/15 • Does this mean 70% off? • no • 35% discount is deducted from the retail price to yield first net price • Then, 20% is deducted from first net price to yield second net price • Then 15% is deducted from the second net price to yield final net price

  3. For Example • Retail price is $400. Chain discount is 30% less 25%. • Find the first net price • Dollar Discount = X = • First Net Price = - = • Final net price • Dollar Discount = X = • Final Net Price = - =

  4. Make it simple • Chain Shortcut Formula Retail Price x (1 – 1st discount) x (1 – 2nd discount) Example List Price of $200. Chain discount is 15% less 25% Net Price: x X = • $200 x (1-.15) x (1-.25) • $200 x (.85) x (.75) • Answer = $127.50

  5. Putting it together • The Green Lawn Corporation produces a lawn mower, which is priced at $695. A new model is ready for production, so the old model is to be discontinued. Green Lawn is offering a chain discount of 20% then 10% (20/10). What is the final net price of the old lawn mower?

  6. Example: • You get a coupon in the mail for 40% off of a pair of shoes that are already 25% off. The shoes are $50. What would your final cost for the Shoes be? Net Price: x X =

  7. Try: $895 with 20/10/35 discount Net Price: x X X =

  8. Figure this… • The football stadium sold a total of 15,500 tickets, of those tickets 25% were sold to women. Of the tickets sold to women, 50% of them were sold at a discounted price. How many women purchased discounted tickets? • Remember to round up to the nearest whole number • 15,500 x .25 = 3875 • 3875 x .50 = 1938

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