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%

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Definitions:

Otitis

Inflammation or infection of the ear, which can affect different parts of the ear leading to conditions such as otitis media or externa.

Otosclerosis

A disorder of the middle ear that causes hearing loss due to abnormal bone growth around the stapes bone, which can immobilize it and prevent sound from entering the inner ear.

Pruritus

The medical term for itching, a symptom that can result from various conditions and cause a desire to scratch.

Jaeger Chart

A chart used in eye examinations consisting of texts of various sizes to test near vision acuity.