Question
McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $874,000; 40% of the customers pay on the 10thday and
McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $874,000; 40% of the customers pay on the 10thday and take discounts, while the other 60% pay, on average, 66 days after their purchases. Assume 365 days in year for your calculations.
What is the percentage cost of trade credit to customers who take the discount?
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
