Mike Morgan, a sales representative for a major food service distributor of Betty Crocker's Warm Delights, wanted to encourage larger purchases by supermarkets and mass merchandisers. In order to accomplish this objective, Morgan offered the following discounts to his customers: a 10 percent discount for buying 1-49 cases of Warm Delights within a calendar month. The discount increases to 12 percent if 50-99 cases of Warm Delights are purchased and to 15 percent if 100 or more cases of Warm Delights are purchased within the same calendar month. What type of discount was Morgan offering his customers?
A)a seasonal discount
B)a quantity discount
C)a cash discount
D)a trade discount
E)a case allowance discount

Question

Quizplus · Accepted Answer

The discount offered by Mike Morgan is a quantity discount, as the size of the discount is determined by the quantity of Warm Delights purchased within a calendar month.

Mike Morgan, a Sales Representative for a Major Food Service