Question 1129157

Given a chain discount of {{{15/12}}} what will the single equivalent discount rate be? 
 
{{{15/12}}} means a customer might be offered {{{15}}}% off the list price of a particular product and then a further {{{12}}}% for purchasing in volume

Single equivalent discount = Chain Discounts / List Price

In general the single equivalent rate can be calculated using the SED formula which can be stated as follows:


{{{SED = 1 - (1-15)}}}% * {{{(1-12)}}}%

{{{SED = 1 - (1-0.15) * (1-0.12) }}}

{{{SED = 1 - (0.85) * (0.88) }}}

{{{SED = 1 - 0.748}}}
 
{{{SED = 0.252}}} -> the single equivalent discount rate ({{{25.2}}}%)