A manufacturer sells an item with a list price of $340 to a distributor. The distributor receives a trade discount of 40%, how much will the distributor pay for the item after the discount?

Discounted price = $
(round to the nearest cent if necessary)

To determine how much the distributor will pay for the item after the trade discount, follow these steps:

1. **Calculate the amount of the discount:**
   The trade discount is 40% of the list price. 
   \[
   \text{Discount amount} = \text{List price} \times \text{Discount rate}
   \]
   Given:
   \[
   \text{List price} = \$340
   \]
   \[
   \text{Discount rate} = 40\% = 0.40
   \]
   So,
   \[
   \text{Discount amount} = 340 \times 0.40 = 136
   \]

2. **Subtract the discount amount from the list price to find the discounted price:**
   \[
   \text{Discounted price} = \text{List price} - \text{Discount amount}
   \]
   \[
   \text{Discounted price} = 340 - 136 = 204
   \]

Therefore, the distributor will pay \$204.00 for the item after the discount.

Discounted price = \$204.00

Would you like more details or have any questions about the calculation?

Here are some related questions that might help deepen your understanding:

1. What is a trade discount and how is it typically used in business transactions?
2. How would the calculation change if the discount rate was 30% instead of 40%?
3. How do you convert a percentage to a decimal for calculations?
4. What would the final price be if an additional 10% discount was applied after the initial 40% discount?
5. How can you verify the accuracy of your discount calculations?
6. Why might a distributor receive a trade discount from a manufacturer?
7. How would the calculation differ if there were taxes applied after the discount?
8. How can businesses ensure they apply the correct discount rate in their transactions?

**Tip:** Always double-check your calculations for accuracy, especially in financial transactions where precision is crucial.

Learn how to calculate the discounted price after a 40% trade discount on an item with a list price of $340. This problem involves percentage calculations and discount application in business transactions. Suitable for Grades 7-9.

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