Fly, a manufacturer of indoor and outdoor heaters, has production facilities that are not running at their full capacity because of piled up inventory. Fly offers a discount to retailers who purchase heaters while the weather is still warm, because the cold months are still at least three months away. Based on historical sales data, Digimart, a retailer, picks up 200 heaters from Fly at a discount of 30% on the usual price. This scenario is an example of a(n) _____.

Question

Quizplus · Accepted Answer

The scenario describes a discount offered by Fly to retailers for purchasing heaters while the weather is still warm, as the cold months are still at least three months away. This type of discount is commonly referred to as a seasonal discount. Therefore, the correct answer is E. The scenario does not involve a noncumulative or cumulative quantity discount, slotting allowance, or cash discount.

Fly, a Manufacturer of Indoor and Outdoor Heaters, Has Production