Good for the company cause the more loyal a customer is the more they will want to spread your sells advertisemants and recommend you to other company.
Answer:
Nominal Cost of Trade Credit = 25.09%
Exact Cost of Trade Credit = 28.03%
Explanation:
given data
buys worth = $1,000
terms = 3/15 n60
pays the bill = 60th day
to find out
Nominal Cost of Trade Credit and Exact Cost of Trade Credit
solution
we know here Discount % and time 60 day and discount period that is
Discount % = 3%
time for Payment = 60 days
and Discount Period = 15 days
so Nominal Cost of Trade Credit will be as
Nominal Cost of Trade Credit = Discount % ÷ (100 - Discount % ) × [ 365 ÷ (time for Payment - Discount Period) ] ..................1
put here value we get
Nominal Cost of Trade Credit = 
× 
Nominal Cost of Trade Credit = 25.09%
and
Exact Cost of Trade Credit will be here as
Exact Cost of Trade Credit = (1+Discount % ÷ (100%-Discount %))^(365/(time for Payment - Discount Period) - 1 ..................2
put here value we get
Exact Cost of Trade Credit = 
Exact Cost of Trade Credit = 28.03%
Answer:
Option C There is upward pressure on prices
Explanation:
The reason is that the price and supply are inversely proportional to each other. If the supply increases the prices of the product will decrease. This means that the product will increase its value if the supply of the product gets lower. Also note that the price moves upward to reach equilibrium for a level of supply. It means if the product prices increases then the supply shortage will be lowered as a result nobody will buy the product. So the supplier will have to lower price that the consumer will be willing to pay to the supplier.
Answer:
The more money you put down, the smaller your principal value becomes. Having a smaller principal value will make your monthly payments smaller.
Explanation:
The amount of a down payment you pay will affect your monthly mortgage payment. If you put a larger down payment on your mortgage/loan you will pay less in monthly mortgage payments. If you put a smaller down payment you will end up paying more monthly.
Answer:
Supplier A generates a profit of 75,000 after transportation cost.
Explanation:
Currnetly Supplier A is responsable for half the cases so:
6,000 x 1/2 = 3,000 cases are sold by A
each one is sold at 100 so 3,000 x 100 = 300,000
the margin is 25% of the selling price:
300,000 x 25% = 75,000
It has to pay $2 transportation cost per case:
3,000 cases x $2 = $6,000
Their profit after transportation cost:
75,000 - 6,000 = 69,000
