Justin, a sales representative for Serta Mattress manufacturers, phones Kirk of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is
A)cash.
B)noncumulative.
C)seasonal.
D)trade.
E)cumulative.

Question

Quizplus · Accepted Answer

The offer is a noncumulative discount because it is a one-time reduction for increasing the order quantity and cannot be combined with any other discounts or promotions. The fact that it is due to a recent overstock condition indicates that it is not a seasonal or trade discount. It is also not a cash or cumulative discount.

Justin, a Sales Representative for Serta Mattress Manufacturers, Phones Kirk