A manufacturer of motor oil has a trade discount policy whereby the manufacturer’s suggested retail price is $30 per case with the terms of 40/20/10. The manufacturer sells its products through jobbers, who sell to wholesalers, who sell to gasoline stations. What will the manufacturer’s sale price be?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
A manufacturer of motor oil has a trade discount policy whereby the manufacturer’s suggested retail price is $30 per case with the terms of
40/20/10. The manufacturer sells its products through jobbers, who sell to wholesalers, who sell
to gasoline stations. What will the manufacturer’s sale price be?
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