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The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China.
-Refer to Scenario 19.2.BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days,the buyer will receive a rebate of 5 percent.This type of pricing would be an example of ____ discounts.

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Cumulative discounts are offered over a period of time and are based on the total amount of purchases made during that period. In this case, BASF is offering a 5% rebate on orders of $100,000 or more during the next 90 days. This means that businesses that make multiple orders of $100,000 or more during this period will receive a cumulative discount on their total purchases.

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