Dixie Tours Inc

question 30

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 R720,000 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:

Retroactive Interference

A phenomenon where newly learned information interferes with the recall of previously learned information.

Proactive Interference

A phenomenon where older memories interfere with the recall of newer memories.

Decay

The process of decline in quality, power, or vigor, often used in the context of physical objects deteriorating or the fading of memories over time.

Cue-dependent Forgetting

The inability to recall information in the absence of specific cues or contexts that were present at the time the memory was formed.