Cady ClayWorks offers its customers a 10 percent discount if they buy at least $200,000 worth of products during a year. The products may be bought in one order-or spread out over several orders. Cady ClayWorks is offering a:
A) cumulative quantity discount.
B) brokerage allowance.
C) seasonal discount.
D) noncumulative quantity discount.
E) cash discount.

Question

Quizplus · Accepted Answer

The discount offered by Cady ClayWorks is dependent on the cumulative quantity of purchases made by the customer over the course of a year. Therefore, it is a cumulative quantity discount.

Cady ClayWorks Offers Its Customers a 10 Percent Discount If