Text description with written audio for the video titled "Learning Unit Video 11-01"

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Audio 1

Narrator: "Chapter 11 discusses trade discounts and cash discounts. If you're a business and you're working with other businesses or you're working with consumers, there's typically a trade discount you get to take advantage of. So, you'll learn about that. In addition, we've got cash discounts. If you pay early or you pay in cash, how much can you save your company or yourself? That's what we'll be talking about in this chapter."

Description 1

The visual shows a speaker standing in a room set up and speaking into the camera.

Audio 2

Narrator: "The list price of a dining room set is, is, is, with a 5 percent trade discount is $12,000. What are the trade discount amount, what we're going to save and the net price, what are we going to pay? Use the compliment method. Okay, let's get a look at this. Let's first look at the blueprint. We see the list price is $12,000. We see that we're going to get a trade discount of 40 percent. That means for every $1, we're going to save what? 40 cents on the dollar. We're solving for really two things here; the trade discount amount and the net price. What we're going to save and what we're going to pay. To do the trade discount amount, we have to take the list price times the discount rate. To get the net price, so what we're going to pay, we take the list price times the compliment of the trade discount. Now, in terms of a pie chart, here, the trade discount amount we represented by the portion or the part. The rate represents the trade discount rate of 40 percent or point four zero in decimal and the base is the whole or the actual list price of 12,000."

Description 2

The visual displays a total of 3 practice questions and their corresponding calculations for Chapter 7, Learning Unit 7-1. The visual displays the following textual information and answers for practice question number 1: The list price of a dining room set with a 40 percent trade discount is $12,000. What are the trade discount amount and net price? (Use the complement method for net price.) The visual displays a table and the table is as follows:

Audio 3

Narrator: "Let's look at the steps. To calculate the trade discount, we take 12,000, the list price at a savings of 40 cents per dollar or point four O, we're going to save $4,800. To find out what we're paying, you take 12,000 times point six O. Now, why point six O? That's the compliments. Take 100 percent less 40 percent of what you save, so you're spending 60. I always try to tell people, think of it this way, for every $1, you're spending 60 cents on the dollar. So, in this case, our net price is $7,200."

Description 3

The Actual problem and the corresponding steps to solving problem for first practice question are as follows:

Audio 4

Narrator: "In question two, the net price of a video system has a 30 percent trade discount, is 1,400. What's the list price? Now, first thing is let's look at our blueprint. Net price, 1,400, trade discount rate, 30 percent. The formula for list price says to take the net price over the compliment of the trade discount, or, in this case, the net price is 1,400, the compliment of the trade discount is 100 percent less 30 percent or point seven zero in decimal. Remember, we're looking for the base, which is our list price. So, let's look at the steps. One, we calculate the compliment; 100 percent less 30 percent equals 70 percent or in decimal point seven zero. Step two, we get the list price; 1,400 divided by the point seven zero or 2,000."

Description 4

The second practice question displays the following textual information: The net price of a video system with a 30 percent trade discount is $1,400. What is the list price? The visual displays a table as follows:

The Actual problem and the corresponding steps to solving the problem for second practice question are as follows: Step 1. Calculate the complement of trade discount.

Step 2. Calculate the list price.

Audio 5

Narrator: "In number three, Lamp Outlet bought a shipment of lamps from a wholesaler. Total list price is 12,000. Now, we get a chain discount of 5/10/25. Our goal here is to calculate the net price and the trade discount amount and it says use price equivalent rate. That means what are we paying per dollar, and it says single equivalent rate, that means what are we saving per dollar. So, the net price equivalent is what you're paying per dollar, single equivalent discount rate is what you're saving per dollar. So, here we go. List price is 12, discount 5/10/25. We want the net price, we want the trade discount amount. Well, what are the formulas? Net price equals list price times the net price equivalent rate or what you're paying per dollar. Trade discount is the list price times the single equivalent rate of what you're saving per dollar. The key here is we do not round off the net price equivalent rate or the single equivalent discount rate. This will all show up in the steps. Number one, to calculate the compliment, we take each chain discount from 100 percent, giving us 95/90/75. We convert that to decimal, point nine five times point nine zero times point seven five, that gives us a net price equivalent rate of point six four one two five. Stop right there. What does that really mean? It means, for one, each $1 you are spending, you are actually only paying roughly 64 cents on the dollar. If the original price in step three is 12,000 times a net price equivalent rate, six point six four one two five gives up a net price, in this case, of 7,695. Remember, thou shalt never round the net price equivalent rate. To get the single equivalent discount rate in number four, you can punch a 1 in, 1 minus the net price equivalent rate or point six four one two five, gives us a point three five eight seven five or what we call the single equivalent discount rate. Now, really, what does that mean? It means for every $1 you spend; you are saving almost 36 cents on the dollar. So, now, since we don't round, in step five, you take the 12,000 times the point three five eight seven five and you are saving $4,305."

Description 5

The third practice question displays the following textual information: Lamps Outlet bought a shipment of lamps from a wholesaler. The total list price was $12,000 with a 5/10/25 chain discount. Calculate the net price and trade discount amount. (Use the net price equivalent rate and single equivalent discount rate in your calculation.) The visual displays a table as follows:

The Actual problem and the corresponding steps to solving the problem for third practice question are as follows: Step 1. Calculate the complement of trade discount.

Step 2. Calculate the net price.

An arrow each from 95 percent, 90 percent, and 75 percent points to point nine five, point nine zero, and point seven five, respectively.

Step 3: Calculate the net price.

Step 4: Calculate the single equivalent discount rate.

Step 5: Calculate the trade discount amount.

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