T-Shirt Cost Calculation: Discount & Freight Included

Hey guys! Ever wondered how to calculate the final cost of a bulk purchase after discounts and extra charges? Let's break down a common scenario step-by-step. In this article, we'll tackle a mathematical problem involving calculating the final cost of 80 T-shirts, considering a trade discount and freight charges. This is super practical knowledge, whether you're running a business, managing inventory, or just curious about how pricing works. So, grab your calculators (or mental math skills!) and let’s dive in!

Understanding the Problem: 80 T-Shirts and Extra Costs

Our main focus here is on calculating the total cost of purchasing 80 T-shirts. We're starting with a base price and then factoring in both a discount and additional charges. This kind of calculation is essential in many real-world situations, from retail to manufacturing. Let's break down the initial information we have:

• We are buying 80 T-shirts.
• Each T-shirt costs Rs. 150.
• There's a trade discount of 20%.
• There are freight charges of Rs. 200.

The challenge is to find the final amount we need to pay after applying the discount and adding the freight charges. To get there, we'll need to follow a series of steps, each building on the previous one. This ensures we get to the correct final amount. The process involves multiplication, percentage calculations, and addition, all fundamental math skills that are used daily in financial and business contexts. Don't worry, we'll walk through each step together to ensure everything is clear and easy to follow!

Step 1: Calculating the Initial Cost

The first step in figuring out the total cost involves finding the initial cost of all the T-shirts before any discounts or extra charges are applied. This is a straightforward multiplication problem. The initial cost serves as the foundation for all subsequent calculations, so getting this right is crucial. The formula for this step is simple:

Initial Cost = Number of T-shirts × Price per T-shirt

In our case, we have 80 T-shirts, and each one costs Rs. 150. So, let’s plug those numbers into the formula:

Initial Cost = 80 × Rs. 150

Now, we just need to multiply these two numbers. You can use a calculator, do it by hand, or even use a mental math trick. Multiplying 80 by 150 gives us:

Initial Cost = Rs. 12,000

So, the initial cost of the 80 T-shirts, before any discounts or additional charges, is Rs. 12,000. This is our starting point for the rest of the calculation.

Step 2: Applying the Trade Discount

Next up, we need to factor in the trade discount. A trade discount is a reduction in the list price of a product or service, offered by a seller to a buyer. In our scenario, we have a trade discount of 20%. This means we get to reduce the initial cost by 20%. Calculating the discount amount is a crucial step in determining the final cost.

To calculate the discount, we need to find 20% of the initial cost, which we calculated as Rs. 12,000. Here’s the formula to calculate the discount amount:

Discount Amount = (Discount Percentage / 100) × Initial Cost

Plugging in our values, we get:

Discount Amount = (20 / 100) × Rs. 12,000

First, we can simplify 20/100 to 0.20. Now the equation looks like this:

Discount Amount = 0.20 × Rs. 12,000

Multiplying 0.20 by 12,000 gives us:

Discount Amount = Rs. 2,400

So, the trade discount is Rs. 2,400. This is the amount we get to subtract from the initial cost. To find the cost after the discount, we subtract this amount from the initial cost:

Cost After Discount = Initial Cost - Discount Amount Cost After Discount = Rs. 12,000 - Rs. 2,400 Cost After Discount = Rs. 9,600

Therefore, after applying the 20% trade discount, the cost of the T-shirts is reduced to Rs. 9,600.

Step 3: Adding the Freight Charges

The final piece of the puzzle is the freight charges. Freight charges are the costs associated with transporting goods from one place to another. In our case, there’s an additional charge of Rs. 200 for freight. This is a straightforward addition to the cost we calculated after the discount.

To find the final cost, we simply add the freight charges to the discounted cost. Here’s the formula:

Final Cost = Cost After Discount + Freight Charges

We know the cost after the discount is Rs. 9,600, and the freight charges are Rs. 200. Plugging these values into the formula gives us:

Final Cost = Rs. 9,600 + Rs. 200

Adding these two amounts together, we get:

Final Cost = Rs. 9,800

So, the final cost of the 80 T-shirts, after applying the 20% trade discount and adding the Rs. 200 freight charges, is Rs. 9,800. This is the total amount that needs to be paid.

Final Answer: Rs. 9,800

Alright, guys, we’ve reached the end of our calculation journey! After carefully considering the initial cost, the trade discount, and the freight charges, we’ve arrived at the final cost of Rs. 9,800 for the 80 T-shirts. This is the amount you would need to pay after all the deductions and additions. Understanding how to calculate these costs is super useful in real-life scenarios, whether you're a business owner or just trying to manage your personal finances. By breaking down the problem into smaller, manageable steps, we've made the process easy to understand and follow.

Why This Calculation Matters

Understanding how to calculate costs, discounts, and additional charges like freight is essential for several reasons. Accurate cost calculation is critical in business for pricing products or services, managing budgets, and ensuring profitability. In personal finance, this knowledge helps you make informed purchasing decisions, understand invoices, and plan your spending effectively.

Knowing how discounts work can help you save money, and understanding additional charges prevents unexpected costs. It’s also a valuable skill for negotiating prices and understanding the true cost of a purchase. Whether you’re running a small business or just managing your household budget, the ability to accurately calculate these figures is a powerful tool. These basic math skills can have a significant impact on your financial well-being and decision-making process.

Practice Makes Perfect

If you found this calculation helpful, try practicing with different numbers and scenarios. Change the quantity of T-shirts, the price per piece, the discount percentage, or the freight charges. The more you practice, the more comfortable you'll become with these types of calculations. You can even apply these skills to other situations, such as calculating sale prices at a store or figuring out the total cost of an online order. Math is like a muscle – the more you use it, the stronger it gets! So, keep practicing, and you’ll become a cost calculation pro in no time.