Trade discount: Often retailers sell merchandise at a suggested retail price determined by the manufacturer. The trade discount is the percentage discount given to the retailer by the manufacturer....

Trade discount: Often retailers sell merchandise at a suggested retail price determined by the manufacturer. The trade discount is the percentage discount given to the retailer by the manufacturer. The resulting price is the retailer’s net cost and so is called the cost price. For example, if the suggested retail price is $100.00 and the trade discount is 45%, then the cost price is 100.00 − 45% × 100.00 = 55.00 dollars.

a. If an item has a suggested retail price of $9.99 and the trade discount is 40%, what is the retailer’s cost price?

b. If an item has a cost price of $37.00 and a suggested retail price of $65.00, what trade discount was used?