Answer c Pages 359 LO 3 AACSB Analytic QD Medium Rationale The first number in

Answer c pages 359 lo 3 aacsb analytic qd medium

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Answer: c Page(s): 359 LO: 3 AACSB: Analytic QD: Medium Rationale: The first number in the percentage sequence always refers to the retail end of the channel. The 5 refers to a percentage of the wholesale price that is available to the jobber to cover costs and provide a profit. See Figure 14-7 in the textbook. - 88 -
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Figure 14-7 14-265 TRADE (FUNCTIONAL) DISCOUNTS COMPREHENSION Consider Figure 14-7 above. Suppose a manufacturer quotes price in the following form: List price—$100 less 30/10/5. What does “A” represent? a. the wholesaler’s trade discount b. the retailer’s trade discount c. the jobber’s trade discount d. the manufacturer’s trade discount e. the manufacturer’s markup Answer: b Page(s): 359 LO: 3 AACSB: Analytic QD: Medium Rationale: The manufacturer quotes price as list price of $100 less 30/10/5. The first number in the percentage sequence always refers to the retail end of the channel. The last number always refers to the wholesaler or jobber closest to the manufacturer in the channel. The trade discounts are simply subtracted one at a time. “A” represents the retailer’s trade discount. “B” represents the wholesaler’s trade discount. “C” represents the jobber’s trade discount. See Figure 14-7 in the textbook. 14-266 TRADE (FUNCTIONAL) DISCOUNTS COMPREHENSION Consider Figure 14-7 above. Suppose a manufacturer quotes price in the following form: List price—$100 less 30/10/5. What does “B” represent? a. the wholesaler’s trade discount b. the retailer’s trade discount c. the jobber’s trade discount d. the manufacturer’s trade discount e. the manufacturer’s markup Answer: a Page(s): 359 LO: 3 AACSB: Analytic QD: Medium Rationale: The manufacturer quotes price as list price of $100 less 30/10/5. The first number in the percentage sequence always refers to the retail end of the channel. The last number always refers to the wholesaler or jobber closest to the manufacturer in the channel. The trade discounts are simply subtracted one at a time. “A” represents the retailer’s trade discount. “B” represents the wholesaler’s trade discount. “C” represents the jobber’s trade discount. See Figure 14-7 in the textbook. - 89 -
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14-267 TRADE (FUNCTIONAL) DISCOUNTS COMPREHENSION Consider Figure 14-7 above. Suppose a manufacturer quotes price in the following form: List price—$100 less 30/10/5. What does “C” represent? a. the wholesaler’s trade discount b. the retailer’s trade discount c. the jobber’s trade discount d. the manufacturer’s trade discount e. the manufacturer’s markup Answer: c Page(s): 359 LO: 3 AACSB: Analytic QD: Medium Rationale: The manufacturer quotes price as list price of $100 less 30/10/5. The first number in the percentage sequence always refers to the retail end of the channel. The last number always refers to the wholesaler or jobber closest to the manufacturer in the channel. The trade discounts are simply subtracted one at a time. “A” represents the retailer’s trade discount. “B” represents the wholesaler’s trade discount. “C” represents the jobber’s trade discount.
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