A _____ is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
a. cash discount
b. quantity discount
c. functional discount
d. seasonal discount
ANSWER: a
A cash discount is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill.Prompt payment saves aseller carrying charges and billing expenses and allows the seller to avoid bad debt.
Business
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Zipee Inc's unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units?
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