A household appliance dealer buys microwave ovens from a, Cost Accounting

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A household appliance dealer buys microwave ovens from a

A household appliance dealer buys microwave ovens from a manufacturer and resells them to its customers.

a. The manufacturer sets a list or catalogue price of $1,500 for a microwave. The manu- facturer offers its dealers a 30 percent trade discount.

b. The manufacturer sells the machine under terms of FOB destination. The cost of shipping is $150.

c. The manufacturer offers a sales discount of 2/10, n/30. Sales discounts do not apply to shipping costs.

What is the net cost of the microwave to the dealer, assuming it is paid for within 10 days of purchase?

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Cost Accounting: A household appliance dealer buys microwave ovens from a

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Cost Accounting: A household appliance dealer buys microwave ovens from a

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