Slipshod Machine Tool Co

question 99

Essay

Slipshod Machine Tool Co.owes $40,000 to one of its suppliers.The supplier has offered a trade discount of 2/10 net 30.Slipshod can borrow the funds from either of two banks.First City Bank will loan the funds for 20 days at a cost of $400.Upstart Bank offers a discounted loan for 20 days at a cost of $320.
A)What is the cost of failing to take the discount?
B)What is the annual interest rate on each of the loans?
C)Which alternative should Slipshod follow?

• A)What is the cost of failing to take the discount?
• B)What is the annual interest rate on each of the loans?
• C)Which alternative should Slipshod follow?

---

Definitions:

Situational Influences

External factors that affect consumer behavior and decision-making, including physical, social, and temporal conditions.

Antecedent States

Psychological states or conditions that precede and influence consumer behavior and decision-making.

Consumer Involvement

The degree of interest and importance that consumers attribute to the purchase of a specific product or service.

Product Knowledge

An understanding of a product’s features, benefits, applications, and potential limitations, crucial for effective marketing and sales strategies.