An Invoice in the Amount of $916 Is Subject to a Trade

question 54

Multiple Choice

An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms on 3/10, n/30. If the invoice is not paid within the discount period, the amount that would be paid to satisfy the invoice would be

• A) $824.40.
• B) $888.52.
• C) $981.27.
• D) $916.00.

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Definitions:

Normal Profit

The minimum level of profit necessary for a firm to remain competitive in the market, essentially covering opportunity costs.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Purely Competitive Industry

A purely competitive industry is characterized by many buyers and sellers, homogenous products, and free entry and exit from the market, ensuring no single entity can control the market price.

Units of Output

Quantities of product or service produced by a company, which can be measured to assess productivity or performance.