Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a .
A) seasonal discount
B) cash discount
C) functional discount
D) by-product allowance
E) trade-in allowance

Question

Quizplus · Accepted Answer

This is an example of a trade-in allowance, where a discount is given to customers who bring in an old item in exchange for a new one.

Vac "N" Sew, a Consumer Electronics Outlet, Offers a Price