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If the Terms of the Trade Discount Are Listed as "20/10/5

Question 205

Multiple Choice

If the terms of the trade discount are listed as "20/10/5," the number "20" represents

A) 20 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit.
B) 20 percent of the suggested wholesale price that is available to the wholesaler to cover costs and provide a profit.
C) 20 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit.
D) 20 percent of the manufacturer's suggested retail price that is available to the ultimate consumer.
E) 20 percent of the suggested retail price that is the profit margin to the manufacturer.

Correct Answer: