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Performance Motors Prices Its Automobiles to Achieve a 15 to 20

question 8

Multiple Choice

Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.


Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the cost of transport until they are delivered to the buyer's location.

Prepaid Freight Costs

Expenses paid in advance for the transportation of goods.

Purchases Discount

A reduction in the price paid for goods and services if payment is made within a certain period, often used to encourage early payment.

Cash Discounts

A reduction in the invoice amount by a seller to encourage early payment from the buyer, usually within a specified time frame.

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