Question: A household appliance dealer buys microwave ovens from a manufacturer

A household appliance dealer buys microwave ovens from a manufacturer and resells them to its customers.
a. The manufacturer sets a list or catalogue price of $1,500 for a microwave. The manufacturer offers its dealers a 30 percent trade discount.
b. The manufacturer sells the machine under terms of FOB destination. The cost of shipping is $150.
c. The manufacturer offers a sales discount of 2/10, n/30. Sales discounts do not apply to shipping costs.
What is the net cost of the microwave to the dealer, assuming it is paid for within 10 days of purchase?


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  • CreatedMarch 26, 2014
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