As a project for her marketing class, Emily Washington is researching how five local businesses price their products. The following are brief sketches of what she has learned about each company. At Bella Computers, Emily has discovered that the company earned a 6 percent return on investment this year and wants to increase it to 9 percent next year. To its retailer customers, Bella Computers gives cash discount terms of 2/10, net 30 . It also gives retailers a 3% reduction on the invoice amount for advertising Bella products locally. Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell. At Ross Pharmaceuticals, she learned that the company has invested heavily in developing a new product that recently received a patent. Because cash is tight, the company wants to achieve a rapid return on its investment. The new patented product is badly needed in the market, so a very inelastic demand curve is expected. Digital Imaging makes photographic prints for wedding photographers. It is very concerned about competitor reactions to its pricing, so it has selected prices that will not draw the attention of the competition and not start a price war. Digital Imaging offers customers an 8% discount if their purchases exceed $20,000 a year. Jack's One Hour Cleaners recently opened for business. The company invested a lot of money in new equipment and feels that it must quickly get "at least 10% market share to stay in the game." This need obviously influences the company's pricing decisions. Jack's also plans to offer customers 20% discounts on any order over $20. Q1. Which business offers a CUMULATIVE quantity discount? - Digital Imaging - Jack's One Hour Cleaners - National Printing Equipment - Ross Pharmaceuticals - Bella Computers Define Cumulative quantity discount. Q2. Which business offers a NONCUMULATIVE quantity discount? - Jack's One Hour Cleaners - Digital Imaging - National Printing Equipment - Ross Pharmaceuticals - Bella Computers What is the difference between cumulative and non-cumulative discount? Q3. The 3% price reduction Bella Computers gives its retailers is an example of - push money. - value pricing. - an advertising allowances - everyday low pricing - a cash discounts