Level of Difficulty 2 Medium Topic App Discounts Lower the Price 105 Which is

Level of difficulty 2 medium topic app discounts

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Level of Difficulty: 2 MediumTopic: App: Discounts Lower the Price
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105.Which is the type of discount would most likely be given to a customer who pays bills within a stated period? A.Cash discountB. Noncumulative quantity discountC. Trade discountD. Cumulative quantity discountE. Consumer discountCustomers who pay bills within a set period of time may earn cash discounts. Consumer discounts are one-time price reductions the manufacturer passes on to channel members or directly to the consumer.AACSB: AnalyticBlooms: UnderstandFutrell - Chapter 05 #105Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.Level of Difficulty: 2 MediumTopic: App: Discounts Lower the Price
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106.When the book salesperson told the bookstore manager, "3/15 net 60," the manager knew that he was receiving a _____ discount. A. tradeB.cashC. noncumulative quantityD. consumerE. cumulative quantityCustomers who pay bills within a set period of time may earn cash discounts, such as 3% off the bill if it is paid within 15 days. Consumer discounts are one-time price reductions the manufacturer passes on to channel members or directly to the consumer.AACSB: AnalyticBlooms: UnderstandFutrell - Chapter 05 #106Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.Level of Difficulty: 2 MediumTopic: App: Discounts Lower the Price
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107.The Storage Bin Warehouse has reported a number of break-ins in the past few weeks. As a salesperson for No-Doubt Security Products, you believe your extensive line of alarm systems and locks could greatly benefit the retailer. You make an appointment with the Storage Bin manager for early next week. During your preparation for the sales call you learn the warehouse currently uses poor quality locks and has no security system. You plan to offer the manager a security package consisting of 150 Sure-Bolt locks at a price of $10 each and a new alarm system costing $5,000. The terms of the sale are 2/10 net 30. Assuming the Storage Bin manager purchases your suggested order and pays for it in one week, what would be the total cost? A. $6,237B.$6,370C. $6,500D. $6,630E. $6,776Customers who pay bills within a set period of time may earn cash discounts. The total price for the 150 locks is $1,500, so the total bill is $6,500. By paying within 10 days, Storage Bin saves 2% of $6,500, which is $130. Therefore, the amount paid is $6,370 ($6,500 - 130).AACSB: AnalyticBlooms: ApplyFutrell - Chapter 05 #107Learning Objective: 05-02 Discuss the major body of knowledge needed for increased sales success.Level of Difficulty: 3 HardTopic: App: Discounts Lower the Price
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