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:

Cross-Impact Matrix

A tool used to analyze and visualize the effects of one variable on another within a certain context, aiding in decision-making and scenario planning.

Marketplace Trends

Refers to the observable changes or movements in market behavior, preferences, and patterns over time.

Identifying Trends

The process of analyzing data and information to detect patterns or directions in which a market, technology, or preference is moving.