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Manitoba Supply Offers Their Customers Trade Credit with Terms 2/15

Question 15

Multiple Choice

Manitoba Supply offers their customers trade credit with terms 2/15 net 30.This implies that:


A) the annual financing cost of failing to pay within 15 days is about 48%.
B) most customers will pay their bill within 2 days in order to take the maximum discount.
C) Manitoba's customers have very little incentive to pay within the discount period.
D) paying within 30 days will let a customer deduct 15% off the invoice price.

Correct Answer:

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