1 Fairview Clinic buys $600,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 4/10, net 30. What is Fairview Clinics's costly trade credit?
A. $32,000
B. $48,000
C. $40,000
D. $25,000
E. $27,000
2. Fairview Clinic buys $600,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 5/10, net 30. What is Fairview Clinics's free trade credit?
A. $31,667
B. $47,500
C. $39,583
D. $15,833
E. $26,917