final group of wholesalers in the channel (probably jobbers) that are closest to the manufacturerget 5 percent of their selling price (Birr63×0.05=Birr3.15). Thus, starting with themanufacturer’s retail price and subtracting the three trade discounts shows that themanufacturer’s selling price to the wholesaler or jobber closest to it is Birr59.85.Cash Discounts- To encourage retailers to pay their bills quickly, manufacturers offer them cashdiscounts. Suppose a retailer receives a bill quoted at Birr1,000, 2/10 net 30. This means that thebill for the product is Birr1,000 but the retailer can take a 2 percent discount(Birr1,000×0.02=Birr20) if payment is made within 10 days and send a check for Birr 980. If thepayment cannot be made within 10 days, the total amount of Birr1,000 is due within 30 days.