1. value: 10.00 points You place an order for 360 units of inventory at a unit p
ID: 2742214 • Letter: 1
Question
1.
value:
10.00 points
You place an order for 360 units of inventory at a unit price of $115. The supplier offers terms of 2/10, net 60.
How long do you have to pay before the account is overdue?
If you take the full period, how much should you remit?
What is the discount being offered?
How quickly must you pay to get the discount?
If you do take the discount, how much should you remit?
If you don’t take the discount, how much interest are you paying implicitly?
How many days’ credit are you receiving?
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You place an order for 360 units of inventory at a unit price of $115. The supplier offers terms of 2/10, net 60.
Explanation / Answer
A1) 60 days
A2) 360*$115= $41400
B1) Discount is 2%
B2) The entire amount of 41400 shall be paid within 10 days to avail the discount of 2%
B3) Amoount to be remitted is 41400*98%= $40572
C1)Implicit interest is $41400-40572=$828
C2) 60 days credit
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