A household appliance dealer buys refrigerators from a manufacturer and resells them to its customers. a.The manufacturer sets a list or catalogue price of $2,500 for a refrigerator. The manufacturer offers its dealers a 30 percent trade discount. b.The manufacturer sells the machine under terms of FOB destination. The cost of shipping is $240. c.The manufacturer offers a sales discount of 2/10, n/30. Sales discounts do not apply to shipping costs. What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10 days of purchase?
A household appliance dealer buys refrigerators from a manufacturer and resells them to its customers. a.The manufacturer sets a list or catalogue price of $2,500 for a refrigerator. The manufacturer offers its dealers a 30 percent trade discount. b.The manufacturer sells the machine under terms of FOB destination. The cost of shipping is $240. c.The manufacturer offers a sales discount of 2/10, n/30. Sales discounts do not apply to shipping costs. What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10 days of purchase?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A household appliance dealer buys refrigerators from a manufacturer and resells them to its customers.
a.The manufacturer sets a list or catalogue price of $2,500 for a refrigerator. The manufacturer offers its dealers a 30 percent trade discount.
b.The manufacturer sells the machine under terms of FOB destination. The cost of shipping is $240.
c.The manufacturer offers a sales discount of 2/10, n/30. Sales discounts do not apply to shipping costs.
What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10 days of purchase?
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