Am I Buying or Selling in business..pptx

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1. Review: If a trader purchased an item for 600 pesos and like to have 20% mark up based on cost. What will be the trader’s selling price?

2. Answer: 600 x 20% = 120 which is mark up 600 + 120 = 720 will be the selling price

3. Am I Buying or Selling

4. Mechanics: First, I will divide your class into three groups. Second, I will flash a picture on screen. Last, Each team are going to identify whether the picture shows buying or selling. You are going to raise yellow if it shows buying and white if it is selling. The team that can have the most correct answers will be given special prize.

5. Buying

6. Buying

7. Selling

8. Buying

9. Buying

10. Selling

11. Who among you experienced buying clothes in the mall? Who among you purchased a product online ? Did you notice the price when you buy during Christmas and after Christmas? Let say for example you are in an entrepreneurship subject and you are task to sell a product. What will you consider?

12. Do you usually ask the seller or vendor to give you discount?

13. Trade and Cash Discounts

14. Single Trade Discount Discount is a reduction from the list price given to costumers or buyers at the discretion of the seller. Discount is computed using our basic knowledge of percentage statement using the formula P=B x R B is the list or original price R is the rate of discount P is the amount of discount

15. How much is the discount for an item with list price of 2, 450 pesos with a discount rate of 20%. What is the net invoice price?

16. Solution Discount= List Price x discount rate Discount= 2450 x 20% Discount= 490 pesos

17. How about the net invoice price? Net Invoice Price= List Price – Discount Net Invoice Price= 2450 – 490 Net Invoice Price= 1,960 pesos

18. There is also an alternative way of solving NIP and discount. NIP rate= 100% - 20% =80% NIP= List Price x NIP rate NIP = 2450 pesos x 80% NIP = 1,960

19. Therefore discount = List Price - NIP Discount =2450 -1960 Discount = 490  

20. Example 2: An item is listed at 950 pesos but given 12% discount. Find the discount and net invoice price .

21. Solution: NIP rate= 100% - 12% =88% NIP= 950 x 88% = 836 Discount= 950 – 836 = 114

22. Series of Discounts A seller, in some instances, offers additional discounts other than the discount usually given.

23. Example 3 If paid in cash, find the discount and the net invoice price of an item with list price of 8750 pesos with 20% discount and another 8% discount, if the item is paid in cash.

24. Solution Solution 1: Discount 1= 8750 pesos x 20% Discount 1 = 1,750 pesos Therefore the balance will be: 8750 -1750 Balance= 7000

25. Discount 2= 7000 pesos x 8% Discount 2 = 560 pesos

26. How much do you think is the net invoice price and the total discount? Net Invoice Price= 7000 -560 Net Invoice Price= 6,440 pesos  

27. Total Discount= Discount 1 + Discount 2 Total Discount= 1750 + 560 Total Discount= 2,310 pesos

28. To get the NIP rate, you must subtract each rate to 100%. NIP rate= (100% - 20%) (100%- 8%) NIP rate= (80%) (92%) NIP rate= 73.6%

29. Example 4 You are about to buy a new washing machine with a list price of 6000 pesos with 10% original discount plus another 5% discount if you pay in cash. How much is the total discount and the net invoice price?

30. Steps : We first multiply the list price by the first discount rate . To get the second discount, find the difference of the list price and the first discount, and then multiply to second discount rate . We then deduct the second discount from the said difference to get the net invoice price.

31. Solution Discount 1= 6000 x 10% Discount 1= 600 pesos Balance= 6000-600 Balance= 5400 pesos

32. Discount 2= 5400 x 5% Discount 2= 270 pesos Net Invoice Price= 5400 -270 Net Invoice Price= 5,130 pesos   Total Discount = 600+270 Total Discount = 870 NIP rate= (100%- 10%) (100%-5%) NIP rate= (90%) (95%) NIP rate= 85.5%

33. Quiz: Direction: Complete the table below by supplying the missing term. List Price Rate of Discount Discount Net Invoice Price Rate of NIP 1,200 15%       975 10%       995   79.60         81.60 598.40