Question
A dealer buys tooling machines from a manufacturer and resells them to its customers. The manufacturer sets a list or catalogue price of $6,000 for
A dealer buys tooling machines from a manufacturer and resells them to its customers. The manufacturer sets a list or catalogue price of $6,000 for a machine. The manufacturer offers its dealers a 20 percent trade discount. The manufacturer sells the machine under terms of FOB shipping point. The cost of shipping is $350. The manufacturer offers a sales discount of 2/10, n/30. The sales discount does not apply to shipping costs. What is the net cost of the machine to the dealer, assuming it is paid for within 10 days of purchase?
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Auditing And Assurance Services
Authors: David Ricchiute
5th Edition
0538869526, 978-0538869522
