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Homework answers / question archive / From the two calculations below, which is the right way to calculate the purchase discount line? Is it a percentage from the discounted total, or a percentage from the original total? The first calculation method: Product total = 500 Trade discount = 20% Purchase discount = 2% Transportation = 10% 500 - 100 = 400 400 - 8 = 392 (2% of DISCOUNTED product total) 392 + 50 = 442   The second calculation method: 500 - 100 = 400 400 - 10 = 390 (2% of ORIGINAL product total) 390 + 50 = 440

From the two calculations below, which is the right way to calculate the purchase discount line? Is it a percentage from the discounted total, or a percentage from the original total? The first calculation method: Product total = 500 Trade discount = 20% Purchase discount = 2% Transportation = 10% 500 - 100 = 400 400 - 8 = 392 (2% of DISCOUNTED product total) 392 + 50 = 442   The second calculation method: 500 - 100 = 400 400 - 10 = 390 (2% of ORIGINAL product total) 390 + 50 = 440

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From the two calculations below, which is the right way to calculate the purchase discount line? Is it a percentage from the discounted total, or a percentage from the original total?

The first calculation method:

Product total = 500

Trade discount = 20%

Purchase discount = 2%

Transportation = 10%

500 - 100 = 400

400 - 8 = 392 (2% of DISCOUNTED product total)

392 + 50 = 442

 

The second calculation method:

500 - 100 = 400

400 - 10 = 390 (2% of ORIGINAL product total)

390 + 50 = 440

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