Ben's Delivery Buys a Van with a List Price of

question 73

Multiple Choice

Ben's Delivery buys a van with a list price of $ 60,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days, which Ben's did. Non-refundable sales taxes are $ 800 and Ben's paid an extra $ 600 to have a GPS device installed. What amount should Ben's record as the cost of the van?

• A) $ 51,380.
• B) $ 49,980.
• C) $ 51,290.
• D) $ 50,780.

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Definitions:

Perceived Benefits

The advantages that consumers believe they will gain from a product or service, which influence their purchasing decisions.

Value Pricing

A pricing strategy where a product is priced based on the perceived or estimated value it provides to customers, rather than solely on the cost to produce it.

Mini Meals

Small, often nutritious, portions of food intended to meet daily dietary needs without the structure of traditional meal times.

Profit Equation

A mathematical formula used to calculate the difference between a company's total income and its total expenses, identifying net profit or loss.