Use the Information to Answer the Following Question(s)

question 48

Multiple Choice

Use the information to answer the following question(s) .
SureDrip Irrigation Systems Inc. is supplied with plastic chips for their plastic injection molding manufacturing process. Their supplier, Sun Chemical, Inc. offers financing terms of a 2% discount if the accounts payable are paid in 10 days or less with the full balance due in 45 days. Short-term financing available to SureDrip is available at an annual rate of 9.6%. SureDrip has just purchased $400,000 of plastic chips from Sun Chemical.
-Refer to Instruction 18.1.What is the amount of money SureDrip will save on accounts payable if they accept the discount?

• A)$400,000
• B)$8,000
• C)$33,333
• D)$20,000

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Definitions:

National Cooperative Research Act

A U.S. federal law enacted in 1984 to promote innovation and competitiveness by offering certain antitrust protections to companies engaged in joint research and development efforts.

Rule of Reason

A legal doctrine that judges the legality of business practices based on their context and effect on competition, rather than deeming them illegal per se.

Joint Ventures

Collaborative agreements in which multiple parties decide to combine their assets to achieve a particular goal or project.

Leegin Creative Leather Products

A notable Supreme Court case that addressed the legality of price fixing and established guidelines for vertical price agreements.