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

Chain Discounts

• 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

For chain: 35% less 20% less 15%

or 35/20/15

• 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 = - =

For Example

• Chain Shortcut FormulaRetail 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

Make it simple

• 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?

Putting it together

• 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?

 

Example:

Net Price: x X =

Try: $895 with 20/10/35 discount

Net Price: x X X =

• 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

Figure this…