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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
E5A. 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 manu- facturer 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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