Consider the Following Data Supplied by Cotton Tops,a T-Shirt Distributor

question 51

Multiple Choice

Consider the following data supplied by Cotton Tops,a t-shirt distributor:
The manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt.Calculate the savings/loss if Cotton Tops orders 5000 units at a time compared to 10 000 units at a time (assuming the discount only applies to orders of 10 000 units) .

• A)saving $1933.
• B)loss $1933.
• C)saving $2167.
• D)loss $2167.

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Definitions:

Long-Term Debts

Debts or loans that are due for payment in more than one year's time, often used by businesses to finance expansion or large projects.

Next 12 Months

A future time period covering the immediate upcoming year, often used in financial forecasting and planning.

Liabilities

Financial obligations or debts a company owes to others, which must be settled over time through the transfer of economic benefits.

Marginal Rate

The amount of tax applied to an additional dollar of income, often used in the context of progressive tax systems.