How Much Discount Will a Buyer Receive If the Buyer

question 2

Multiple Choice

How much discount will a buyer receive if the buyer pays a trade credit bill of $60,000 with terms of sale of 2/5, net 30 on the net due date?

• A) $0
• B) $500
• C) $1200
• D) $3,000

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Definitions:

Cost Data

Information about the expenses incurred in the production of goods or services.

Market Price

The price at which a good or service is offered in the marketplace.

Short-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period, when some production variables are fixed.

Marginal Cost Curve

A visual chart that illustrates the change in the expense associated with producing an extra unit of a product as the total output grows.