Solve for the Amount of Discount and Amount Due

question 76

Multiple Choice

Solve for the amount of discount and amount due.
-Invoice amt: $1,474
Invoice date: May 16
Terms:
Shipping/Insurance: $33.05 Date paid: May 24

• A)Amount of discount: $58.96; amount due: $1,381.99
• B)Amount of discount: $60.28; amount due: $1,446.77
• C)Amount of discount: $58.96; amount due: $1,448.09
• D)Amount of discount: $0; amount due: $1,507.05

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Definitions:

Traceable Fixed Expenses

Fixed expenses that can be directly linked to a specific segment of a business and would disappear if the segment did not exist.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Variable Expenses

Costs or expenses that change in proportion to business activity levels or volume, such as sales commissions or raw material costs.

Traceable Fixed Expenses

Fixed costs directly associated with specific business segments, which would be eliminated if the segment was discontinued.