Export Ltd

question 123

Essay

Export Ltd.received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/20,n/45 for:
All items are subject to trade discounts of 33.5%,7.125%,4%.
a)What is the last day of the discount period?
b)What is the amount due if the invoice is paid in full on September 6?
c)If only a partial payment is made on the last day of the discount period,what amount is due to reduce the outstanding balance to $1500.00?

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Definitions:

Short-Run

A period in which at least one of a firm's inputs is fixed and cannot be changed.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, which decreases as production increases.

Producing Purses

The activity or business of manufacturing handbags.

Marginal Cost

The cost of producing one additional unit of a product or service, which can inform decisions on how much to produce.