Dixie Tours Inc

question 95

Multiple Choice

Dixie Tours Inc.buys on terms of 2/15,net 30.It does not take discounts,and it typically pays 35 days after the invoice date.Net purchases amount to $720,000 per year.What is the approximate percentage cost of its non-free trade credit?

• A) 17.2%
• B) 23.6%
• C) 26.1%
• D) 36.7%
• E) 50.6%

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Definitions:

Hormones

Chemical messengers produced by endocrine glands that travel through the bloodstream to target organs, regulating various bodily functions and processes.

Neurotransmitters

Chemicals that transmit signals across a synapse from one neuron to another neuron or to a target cell in a muscle or gland.

Synaptic Cleft

Gap separating the neuronal presynaptic membrane from the postsynaptic membrane.

Axon Terminal

The endpoint of a neuron where neurotransmitters are released to communicate with neighboring neurons, muscles, or glands.