A firm that manufactures TVs sells them at prices of $750,$1,000,and $1,250.The manufacturer will return $75,$100,or $125 respectively,by mail,to those who purchase its brand of TV.This reduction in price is an example of a:
A)promotion allowance.
B)trade-in.
C)rebate.
D)quantity discount.

Question

Quizplus · Accepted Answer

A rebate is a discount offered by a manufacturer or distributor that is returned to the buyer in the form of cash or credit. In this case, the $75, $100 or $125 reduction in price is returned by mail to those who purchase the TV, making it a rebate. A promotion allowance is a reduction in price given by a seller to a buyer for advertising or participating in promotional activities. A trade-in is an allowance given for an old or used item traded in for a new item. A quantity discount is a reduction in price given for a large purchase of goods or services. None of these options fit the scenario described.

A Firm That Manufactures TVs Sells Them at Prices of $750,$1,000,and