Answer :
The statement that the Net Price Factor would be 45% is false. It is actually 55%, as it represents the percentage of the original price that is paid after a 45% trade discount. The statement is False.
The statement that the Net Price Factor for the order would be 45% is false. When Patrick's Paint Supplies purchased $7,600 worth of easels, canvas, and pallets with a trade discount of 45%, they are actually getting a discount off the total price.
To calculate the Net Price Factor, we subtract the discount percentage from 100%. Therefore, the Net Price Factor is 100% - 45% = 55%. The Net Price Factor represents the percentage of the original price that Patrick's Paint Supplies is actually paying after the trade discount is applied.
Calculate the Net Price Factor: Net Price Factor = 1 - Trade Discount Rate
Substitute the given trade discount rate of 45%: Net Price Factor = 1 - 0.45 = 0.55
Therefore, the Net Price Factor for this order would be 55%, not 45%. The statement is False.
