Chapter 5

Amount of discount: = Rate of discount x List Price

List Price = Amount of discount / Rate of discount
Rate of discount Amount of discount/ List Price
Net Price = List Price Amount of discount
Discount Series (when you have a series of discounts) An item listed at $... is subject to the trade discount series %...%...%
Net Price = (1-d1) (1-d2) (1-d3) etc * kind of like of it was 5%, 15% etc it would be like (1-.05) making it .95
EOM: End of the month: you start the discount at the end of the month
ROG: receipt of goods: you start the discount period when they receive the item
Markup: Selling Price = Cost of + Expenses + Profit Buying
S= C+E+P
M= E+P
S= C+M
Rate of Markup
Rate of markup based on cost = Markup/ Cost M/C
Rate of markup based on selling price = Markup/Selling Price M/S
Example: article cost 72$
40% of cost? 72 x .4= 28.20= s 72+28.80 = SELLING PRICE IS 100.80
40% OF selling price? 72/.6=120.00

Chapter 6
BREAK EVEN ANAYLSIS
Total Revenue= Volume (units) x Price
Total Variable Cost = Volume (units) x Variable cost per unit
Total Cost = Fixed cost + Total Variable Cost
TOTAL REVENUE = FIXED COST + TOTAL VARIABLE COST + PROFIT
BREAK EVEN POINT: Total revenue Total Cost = Net Income (at the point it must be 0)
To do on the calculator:
ND
2 BRKEVEN FC # ENTER (Down) VC # ENTER (down)P # ENTER (DOWN)...PFT # ENTER (down) CPT

Contribution margin per unit = Selling price per unit Variable Cost per unit
Contribution rate= unit contribution margin / unit selling price
Break even volume= Fixed costs/ Unit contribution Margin
Chapter 7
To find the dates on calculator
nd
2 Date...DT1..04.2309 ENTER (down)
DT2 06.2109 enter (down)

CPT DBD .

I= Prt
Interest = Principle x Rate x Time
P= I/RT ..finding the Principal
R= I/PT finding the rate
T=I/PR finding the time
Future Value(Maturity value) = Principle + Interest S=P + I
then the formula becomes s= P+I ..S= P+Prt .FINAL: S=P(1+rt)
Present Value formula for simple interest :
P=S/(1+rt)

When to use the Future Value Forumula: S= P(1+rt) * is when the due date falls before the focal date

When to use the present value formula: P=S/1+rt when the due date falls after the focal date
Basically use the future value when your looking at things in the past and vice versa