Find the lowest price you would have to pay in each of the following situations. Radio $500, F.O.B. factory; less 30%, 10%, 5%; terms 2/10; freight $62 Office machine $1,200, F.O.B. factory; less 20%, 10%, 10%; terms n⁄30; freight $75.
A businessman in Philadelphia wants to buy electric heaters. His best sources are two firms in Chicago. Let’s call them Firm A and Firm B. Firm A lists a heater at $291 less 331⁄3% and 10%, F.O.B. Chicago. Firm B lists the same heater at $350, less 30% and 20%, F.O.B. destination. In addition, both firms offer a 2% discount for cash within 10 days. The freight on each heater would be $22.75. What will be the lowest cost of the heater from each concern?
Firm A
Firm B
You’ve bought 20 calculators listed at $125 each less 15%, 10%, and 5%. The date of the invoice was June 28, and you paid the bill on July 6. What amount did you pay if the terms were 3⁄10, n⁄60? A trailer is selling for $1,150 less 331⁄3%, 10%, and 4%. What is the invoice cost?
