Intermediate 2

3. Piccirilli Manufacturing Company offers its customers credit terms of 3/15, net 30 to its customers. a. Identify a business purpose of offering such credit terms to customers. (2 points) A purpose of offering customers those credit terms for a discount on full payment within a certain period of time is to potentially increase the percentage in customer payment rate even by a little. b. Compute the annual percentage cost to Piccinilli Manufacturing Company of offering credit terms of 3/15, net 30 to its customers. (2 points) Your Answer Annual Percentage Cost of Credit Terms Supporting Calculation Required