Dixie Tours Inc

question 95

Multiple Choice

Dixie Tours Inc.buys on terms of 2/15,net 30.It does not take discounts,and it typically pays 35 days after the invoice date.Net purchases amount to $720,000 per year.What is the approximate percentage cost of its non-free trade credit?

• A) 17.2%
• B) 23.6%
• C) 26.1%
• D) 36.7%
• E) 50.6%

---

Definitions:

United Auto Workers

A labor union in the United States representing workers in the automotive industry.

International Brotherhood

A term that can refer to solidarity among different nations or peoples, or to specific organizations aiming to promote such solidarity.

Right to Work Laws

Laws that prohibit agreements between labor unions and employers that make membership, payment of union dues, or fees a condition of employment, either before or after hiring.

Union Members

Individuals who belong to a labor union, an organization that represents workers' interests in negotiations with employers over wages, benefits, and working conditions.