Roton IncPurchases Merchandise on Terms of 2/15,net 40,and Its Gross Purchases

Roton Inc.purchases merchandise on terms of 2/15,net 40,and its gross purchases (i.e. ,purchases before taking off the discount) are $525,000 per year.What is the maximum dollar amount of costly trade credit the firm could get,assuming it abides by the supplier's credit terms? (Assume a 365-day year. ) Do not round intermediate calculations.

A) $36,297
B) $31,011
C) $42,992
D) $31,363
E) $35,240