Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $115,900. The seller agreed to allow a 5.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,490. Southwest Milling had to hire a specialist to calibrate the loader. The specialists fee was $880. The loader operator is paid an annual salary of $17,170. The cost of the companys theft insurance policy increased