What Amount Will Reduce the Amount Due on an Invoice

question 91

Essay

What amount will reduce the amount due on an invoice of $9410.25 by $842.00 if the terms of the invoice are 5/10, n/30 and the payment was made during the discount period?

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Definitions:

Variable Cost Concept

A concept used in applying the cost-plus approach to product pricing in which only the variable costs are included in the cost amount to which the markup is added.

Fixed Manufacturing Costs

Expenses related to the production process that do not vary with the volume of production, such as salaries of supervisors and rent of the factory.

Markup

The amount added to the cost of goods to cover expenses and generate profit.

Estimated Costs

The anticipated expenses associated with a project or production, calculated before actual expenses are known.