00:01
So a trader wants to alter his trade discount from 20 to 25%.
00:04
So he was selling something at a 20 % discount.
00:08
Now he wants to sell it at a 25 % discount, but he wants his profit to be the same.
00:15
So let's just assume that he has a $100 item.
00:20
So he's selling a $100 item.
00:22
So that would mean that if he's selling it at 20%, then we're going to take that $100, and we're going to multiply it by $80.
00:30
Because our discount is 20%, meaning we're taking, instead of 100 % of us price, we're reducing it by 20%.
00:38
So he's going to be getting 80 % of the selling price.
00:43
So that's going to be equal to $80.
00:46
So he wants to have that same amount that he's going to put over here and $80.
00:53
But this time he's going to take that item, which is not going to sell for $100.
01:00
We don't know what it's going to sell for, but he's going to multiply that by 75%...