Chapter Outline

This chapter provides a comprehensive exploration of the mathematical concepts in merchandising operations. From trade and cash discounts to markup and markdown strategies, readers will gain insights into essential calculations that drive profitability and pricing decisions in retail and wholesale environments.

7.1 Trade Discounts: This section introduces the concept of trade discounts, which are reductions from the list price granted by sellers to buyers. The calculation methods for single trade discounts and discount series are discussed.

7.2 Cash Discounts: This part delves into cash discounts, focusing on the incentives offered for early payment. It explores various terms of cash discounts, including ordinary dating, end-of-month dating, and receipt of goods dating.

7.3 Markup: This section examines the process of applying a percentage increase to the cost of goods to determine the selling price. It covers the rationale behind markup strategies, how to calculate markups and their impact on pricing and profitability.

7.4 Markdown: This part addresses the reduction of prices from their original selling price. The section discusses how to calculate markdowns and sale prices.

7.5 Integrated Problem: This section presents comprehensive problems that integrate the concepts of trade discounts, cash discounts, markup, and markdown. It aims to apply the mathematical principles discussed throughout the chapter to a real-world scenario, enhancing the reader’s understanding and application of merchandising mathematics.

7.6 Terminology and Glossary of Symbols: Concluding the chapter, this section provides definitions and explanations of key terms and symbols used throughout the discussion.