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VOLUME DISCOUNTS General Supply Co. sells snow removal equipment (shovels) to King Hardware. It offers King the following rebates based on total sales. Units Rebate
VOLUME DISCOUNTS |
General Supply Co. sells snow removal equipment (shovels) to King Hardware. | ||||
It offers King the following rebates based on total sales. | ||||
Units | Rebate | |||
sales of | 100 - 299 | 2% | ||
sales of | 300 - 599 | 4% | ||
sales of | 600 or more | 6% | ||
In the first quarter of the year, General Supply sells 100 shovels to King Hardware | ||||
at a sales price of $3,000. | ||||
General Supply, based on past experience, has sold 500 shovels to King, with | ||||
most those sales normally take place in the fourth quarter of the year. | ||||
What amount should General Supply report for the sale of the 100 shovels | ||||
during the first quarter? |
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