Question: Delta Industries purchases on terms of 2/10, net 30, but generally does not pay until 40 days after the invoice date. The company purchases $1,080,000 net in materials per year. [Use a 360 day year] How much "costly" trade credit does the firm use on average each year?
[A] $ 60,000
[B] $ 90,000
[C] $ 20,000
[D] $ 30,000
[E] $100,000