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Credit terms =2/10, net 20. Gross sales =$1,000,000 60% (of paying customers) pay on Day 10. 30% pay on Day 20. 10% pay on Day

Credit terms =2/10, net 20. Gross sales =$1,000,000

60% (of paying customers) pay on Day 10.

30% pay on Day 20. 10% pay on Day 30.

Bad debt losses =1% of gross sales.

What is the dollar cost of discount?

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