Larry's Lawn Care allows customers to use a credit card for purchases.Larry pays 4 percent of the sale to the credit card company.To promote more business,Larry decides to offer a lower price to customers paying cash-that price being 3 percent less than the standard list price.Larry is giving his customers a(n)
A)functional discount.
B)trade-in allowance.
C)promotional allowance.
D)cash discount.
E)everyday low price.

Question

Quizplus · Accepted Answer

Larry is providing a cash discount to customers equal to the cost of credit.Cash discounts are typically expressed as a percentage off the list price.

Larry's Lawn Care Allows Customers to Use a Credit Card