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Phranklin Pharms Inc. purchases merchandise from a company that gives sales terms of 2/15, net 40. Phranklin Pharms has gross purchases of $800,000 per year.
Phranklin Pharms Inc. purchases merchandise from a company that gives sales terms of 2/15, net 40. Phranklin Pharms has gross purchases of $800,000 per year. What is the maximum amount of costly trade credit Phranklin could get, assuming they abide by the suppliers credit terms? (Assume a 360-day year.)
a. $87,111.20
b. $32,666.70
c. $54,444.50
d. $52,266.67
e. None of the answers above is correct.
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