Question

what is the net price between market price and discount
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Answer 1

Answer:

Discounts are offered on the marked price and the selling price is determined by the discount offered on the marked price. For the process of simplification, let us assume:

C = Cost price

S = Selling price

M = Market price

D% = Discount

G% = Gain

Now,

Discount = D% of marked price, M

Discount = Marked Price – Selling Price

Marked Price – Amount of Discount = Selling Price

M (1-D%) = Selling Price

Also, Selling Price = Cost Price + Gain

Thus,

M (1-D%) = C (1 + G%)

Or in other words

Marked Price (1 – Discount%) = Cost Price (1 + Gain%)

Example-1: Natasha offers her customers a discount of 10% on her beauty products and she still makes a profit of 20%. What is the actual cost to her of that beauty product marked Rs. 400?

Solution:

Marked price = Rs. 400

Discount = 10%

Profit = 20%

Therefore, the Selling Price = 90% of 400

Therefore 400 x 90/100 = Rs. 360

Selling price = Rs. 360

Profit = 20%

Cost price = 100/120 x 360 = Rs. 300

Answer 2

Answer:

The list price is the headline price a company offers to buyers without discounts; the net price is the actual price a customer pays after deducting any trade discounts.

Step-by-step explanation:

As a business owner, choosing the correct pricing structure can determine whether your products and services are appealing to your target audience. The challenge is to establish a pricing structure that gives your prospective customers the lowest price at which you can still make a profit. However, it’s also important to remember that some customers will pay a higher price for items that they believe provide them with high value.