Instruction 22.1: Use the Information to Answer Following Question(s)

question 41

Multiple Choice

Instruction 22.1:
Use the information to answer 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 22.1. 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:

Respiratory Systems

The organs and structures that allow an organism to breathe and exchange oxygen and carbon dioxide throughout the body.

Brain Cells

Cells located in the brain, including neurons and glial cells, responsible for processing and transmitting information.

Digestive Systems

A complex series of organs and glands responsible for the ingestion, breakdown, absorption, and processing of food and nutrients.

Environmental Factors

External elements that can influence the development, behavior, and survival of organisms, including climate, habitat, and pollution.