Is this equivalent to a single trade discount

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Reference no: EM132701105

Question - A supplier may want to give its distributor a discount of 20/10/5. This notation represents a trade discount series. To interpret, the supplier may, in addition to the 20% discount it gives the distributors, slash another 10% from the resulting discounted price if the distributor purchases a set minimum volume of items and another additional 5% if the purchase is paid in cash. Is this equivalent to a 25% single trade discount?

Reference no: EM132701105

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