A household appliance dealer buys refrigerators from a manufacturer and resells them to its customers.
a. The manufacturer sets a list or catalogue price of $2,500 for a refrigerator. The manufacturer offers its dealers a 30 percent trade discount.
b. The manufacturer sells the machine under terms of FOB destination. The cost of shipping is $240.
c. The manufacturer offers a sales discount of 2/10, n/30. Sales discounts dot not apply to shipping costs.
What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10 days of purchase?