The overall purpose of differentiation is letter e, to create superior customer value. It is because differentiation is being defined as a way of making products to be more appealing or attractive in means of using unique qualities that may be of the customer's taste in a way of creating customer value.
Cash discount is a reduction in total price of goods and services for prompt payment.
Explanation:
It is given to enhance prompt payment and to discourage trade credit.
Let's assume a Company offers some certain percentage of discount for prompt payment. A goods cost #100,000 for instance. And then for payment within 10 days, 20% discount will be given, payment between day 11 to 15 days of purchasing the goods 15% discount and payment within 16 to 20 days attracts 10%. It means any customer who pays within the first 10 days of purchasing the goods get a discount of #20,000 (i.e 20% of #100,000), hence pays #80,000 for the good. A payment within day 11 to 15 of purchase gets 15% discount, so is allowed only #15,000 (i.e 15% of #100,000), so pays #85,000 while payment made within day 16 to 20 of purchase attracts only #10,000 discount (i.e 10% of #100,000), so he pays only #90,000. No discount will be given to payment made above 20 days of purchase and the full #100,000 will be paid.
Cash discount is also called Early payment discount
Labor costs that are clearly associated with employees who directly convert materials to finished product are called direct labor
<h3>What is direct labor?</h3>
Direct labour are labor that are used for production.
It includes casual workers in factory, processing and packaging.
Therefore, Labor costs that are clearly associated with employees who directly convert materials to finished product are called direct labor
Learn more on direct labor below
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Answer:
$45,500 is the correct answer.
Explanation:
