One Corporation has two potential suppliers. Both are supplying the items at similar list prices and trade,discounts. However, Supplier A.offered a credit term of 2/10, n/30 and the other offered a term of 3/10, n/40. Which of the following statements is true? a. Alpha should choose Supplier A and pay on the 10th day. b. Alpha should choose Supplier B and pay on the 10th day. c. Alpha can choose either supplier and always pay on the 10th day. d. If Alpha chose Supplier B, the former should pay on the 30th day so that it can maximize the trade discount
One Corporation has two potential suppliers. Both are supplying the items at similar list prices and trade,discounts. However, Supplier A.offered a credit term of 2/10, n/30 and the other offered a term of 3/10, n/40. Which of the following statements is true? a. Alpha should choose Supplier A and pay on the 10th day. b. Alpha should choose Supplier B and pay on the 10th day. c. Alpha can choose either supplier and always pay on the 10th day. d. If Alpha chose Supplier B, the former should pay on the 30th day so that it can maximize the trade discount
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 4P: A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60...
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One Corporation has two potential suppliers. Both are supplying the items at similar list prices and trade,discounts. However, Supplier A.offered a credit term of 2/10, n/30 and the other offered a term of 3/10, n/40. Which of the following statements is true?
a. Alpha should choose Supplier A and pay on the 10th day.
b. Alpha should choose Supplier B and pay on the 10th day.
c. Alpha can choose either supplier and always pay on the 10th day.
d. If Alpha chose Supplier B, the former should pay on the 30th day so that it can maximize the trade discount
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