Final answer:
To calculate the net price and trade discount, we use the chain discount of 13/10/4. The net price is $1,398.11, and the trade discount is $1.89.
Step-by-step explanation:
To calculate the net price and trade discount, we need to understand what the chain discount represents.
The chain discount given is 13/10/4.
This means that the first discount is 13%, the second discount is 10% on the remaining amount after the first discount, and the third discount is 4% on the remaining amount after the second discount.
First, we calculate the net price. Net Price = List Price - (List Price * Chain Discount)
Net Price = $1,400 - ($1,400 * 13/100 * 10/100 * 4/100)
Net Price = $1,400 - ($1,400 * 0.001352)
Net Price = $1,400 - $1.8888
Net Price = $1,398.11
Now, we calculate the trade discount. To do this, we subtract the net price from the list price. Trade Discount = List Price - Net Price
Trade Discount = $1,400 - $1,398.11
Trade Discount = $1.89