REVIEW EXERCISES
|
CHAPTER 7—SECTION I
1. bx.
5. gro.
Box
Gross
2. pt
6. oz
Pint
Ounce
Drum
3. drm.
Thousand
7. M.
Kilogram
4. kg
8. cwt Hundredweight
What word is represented by each of the following abbreviations?
T7-1
T7-2
REVIEW EXERCISES | CHAPTER 7—SECTION I
Using the Frasier invoice on page 210, extend each line to the amount column and calculate the subtotal and total. Then answer questions 9–22. (Note: Although 26 boxes
of 2-inch reflective tape were ordered, only 11 boxes were shipped. Charge only for
the boxes shipped.)
Frasier Manufacturing
10. Invoice number
R-7431
11. Invoice date
June 16, 200x
12. Cust. order #
12144
13. Buyer
J. M. Hardware Supply 14. Terms of sale
Net 30 days
15. Shipping address
2051 W. Adams Blvd.
Lansing, MI 48901
16. Salesperson
H. Marshall
17. Shipped via
Gilbert Trucking
18. Insurance
None listed
19. Freight charges
$61.45
21. Invoice subtotal
$4,415.12
20. Unit price—2" Tape $88.56
$4,476.57
22. Invoice total
9. Seller
21.
1
" Tape $350.40
2
1
1 " Tape 321.48
2
974.16
2" Tape
Sandpaper 2,769.08
Subtotal $4,415.12
22.
Subtotal $4,415.12
Freight
61.45
Total $4,476.57
T7-3
BUSINESS DECISION | CHAPTER 7—SECTION I
T7-4
BUSINESS DECISION
|
CHAPTER 7—SECTION I
REVIEW EXERCISES
|
CHAPTER 7—SECTION II
5
5
5
5
5
30%
$860.00 3 .30 5 $258.00
12%
$125.50 3 .12 5 $15.06
19%
$41.75 3 .19 5 $7.93
8%
$499.00 3 .08 5 $39.92
50%
$88.25 3 .50 5 $44.13
Trade Discount Rate
1. $860.00
Trade discount
2. 125.50
Trade discount
3. 41.75
Trade discount
4. 499.00
Trade discount
5. 88.25
Trade discount
List Price
$44.13 $39.92
$7.93 $15.06 $258.00
Trade Discount
Calculate the following trade discounts. Round all answers to the nearest cent.
T7-5
REVIEW EXERCISES
|
CHAPTER 7—SECTION II
25%
40%
18%
55%
$286.00 3 .25 5 $71.50
$134.79 3 .4 5 $53.92
$21.29 3 .18 5 $3.83
$959.00 3 .55 5 $527.45
Trade
Discount
6. $286.00
7. 134.79
8. 21.29
9. 959.00
List Price
Trade
Discount Rate
Net Price
$214.50
$80.87 $17.46 $431.55
Trade
Discount
$71.50 $53.92 $3.83 $527.45
$286.00 2 71.50 5 $214.50
$134.79 2 53.92 5 $80.87
$21.29 2 3.83 5 $17.46
$959.00 2 527.45 5 $431.55
Net Price
Calculate the following trade discounts and net prices to the nearest cent.
T7-6
REVIEW EXERCISES
|
CHAPTER 7—SECTION II
37%
24%
45.8%
12 34%
Trade Discount Rate
63%
76%
54.2%
87.25%
Net Price Factor
$2,204.37
$429.65
$674.38
$4.01
Net Price
14. $4,500.00
15.
345.50
16.
2.89
List Price
Trade Discount Rate
20.8% 34.9% 25.6% Trade Discount
$935.00
$120.50
$.74
$3,565.00
225.00
2.15
Net Price
Calculate the following trade discounts and trade discount rates. Round answers to
the nearest tenth percent.
10. $3,499.00
11.
565.33
12. 1,244.25
13.
4.60
List Price
Calculate the following net price factors and net prices by using the complement
method. Round all answers to the nearest cent.
T7-7
T7-8
REVIEW EXERCISES | CHAPTER 7—SECTION I I
17. Find the amount of the trade discount on a television set that has a list price of $799.95
less a trade discount of 30%.
Trade discount 5 List price 3 Trade discount rate
Trade discount 5 $799.95 3 .30 5 $239.99
18. Find the amount of the trade discount on a set of fine china that lists for $345.70
less 55%.
Trade discount 5 $345.70 3 .55 5 $190.14
19. What is the amount of the trade discount offered to a shoe store for merchandise purchased at a total list price of $7,800 less a trade discount of 25%?
Trade discount 5 $7,800.00 3 .25 5 $1,950.00
20. Bay Street Market ordered twelve cases of soup with a list price of $18.90 per case,
and eight cases of baked beans with a list price of $33.50 per case. The wholesaler offered a 39% trade discount to Bay Street Market.
a. What is the total extended list price of the order?
$18.90 3 12 5 226.80
$33.50 3 8 5 1268.00
Total extended list price 5 $494.80
b. What is the total amount of the trade discount on this order?
Trade discount 5 $494.80 3 .39 5 $192.97
c. What is the total net amount Bay Street Market owes the wholesaler for the order?
Net Amount 5 $494.80 2 192.97 5 $301.83
REVIEW EXERCISES
|
CHAPTER 7—SECTION II
Net price factor 5 100% 2 46% 5 54%
Net price
5 $2,800.00 3 .54 5 $1,512.00
23. Nathan and David Beauty Salon places an order for beauty supplies from a wholesaler. The list price of the order is $2,800. If the vendor offers a trade discount of 46%,
what is the net price of the order?
Net price factor 5 100 2 41 5 59%
Net price
5 $289.50 3 .59 5 $170.81
22. An item with a trade discount of 41% has a list price of $289.50. What is the net price?
Net price 5 $25,450.00 2 8,653.00 5 $16,797.00
b. What is the net amount Kalaidoscope owes Sandy Sport for the merchandise?
Trade discount 5 $25,450.00 3 .34 5 $8,653.00
a. What is the amount of the trade discount?
21. Kalaidoscope for Kids, a chain of clothing stores, purchased merchandise with a total
list price of $25,450 from Sandy Sport, a manufacturer. The order has a trade discount
of 34%.
T7-9
T7-10
REVIEW EXERCISES | CHAPTER 7—SECTION I I
24. A watch has a list price of $889.00 and can be bought by Sterling Jewelers for a net
price of $545.75.
a. What is the amount of the trade discount?
Trade discount amount 5 $889.00 2 545.75 5 $343.25
b. What is the trade discount rate?
Trade discount rate 5
343.25
5 .3861 5 38.6%
889.00
25. You are the buyer for the housewares department of a large department store. A number of vendors in your area carry similar lines of merchandise. On sets of microwavable serving bowls, Kitchen Magic offers a list price of $400 per dozen, less a 38%
trade discount. Pro-Chef offers a similar set for a list price of $425, less a 45% trade
discount.
a. Which vendor is offering the lower net price?
Kitchen Magic
$400.00 3 (1.00 2 .38)
400.00 3 .62 5 248.00
Net price per dozen 5 $248.00
Pro-Chef
425.00 3 (1.00 2 .45)
425.00 3 .55 5 233.75
Net price per dozen 5 $233.75
Pro-Chef has a lower price.
b. If you order 500 dozen sets of the bowls, how much money will be saved by using
the lower-priced vendor?
500 3 248.00 5 124,000.00
500 3 233.75 5 116,875.00
124,000.00 2 116,875.00 5 $7,125.00 Savings
T7-11
BUSINESS DECISION | CHAPTER 7—SECTION I I
QUANTITY DISCOUNT
26. You are the purchasing manager for VisionMaster, a company that manufactures scanners and other computer peripherals. Your vendor for scanner motors, Enfield Industries, is now offering “quantity discounts” in the form of instant rebates and lower
shipping charges, as follows:
Quantity
1–500 motors
501–1,000 motors
1,001–2,000 motors
Net Price
Rebate
Shipping
$16
16
16
none
$1.20
1.80
$1.30
.90
.60
a. Calculate the cost of the motors, including shipping charges, for each category.
1–500 5 $17.30
501–1,000 5 $15.70
1,001–2,000 5 $14.80
b. If you usually purchase 400 motors per month, what percent would be saved per
motor by ordering 800 every two months? Round to a tenth percent.
17.30 2 15.70 5 1.60
1.60
5 9.2%
17.30
c. What percent would be saved per motor by ordering 1,200 every three months?
Round to a tenth percent.
17.30 2 14.80 5 2.50
2.50
5 14.5%
17.30
d. How much money can be saved in a year by purchasing the motors every three
months instead of every month?
400 3 12 5 4,800 motors per year
4,800 3 2.50 5 $12,000 Savings
e. (Optional) What other factors, besides price, should be considered before changing your purchasing procedures?
Answers will vary: cost of warehousing and insuring the extra motors, prices
falling in the future, new models coming out
REVIEW EXERCISES
|
CHAPTER 7—SECTION III
12/10
18/15/5
20/10/10
15/10/5
25/15/10 12
20/9/8
Trade Discount Rates
5. Net price factor 5 .75 3 .85 3 .8955 .57056
Net price 5 7.25 3 .57056
5 $4.14
6. Net price factor 5 .80 3 .91 3 .92 5 .66976
Net price 5 .39 3 .66976
5 $.26
3. Net price factor 5 .80 3 .90 3 .90 5 .648
Net price 5 81.75 3 .648
5 $52.97
5 $285.12
$285.12
$281.94
$52.97
$711.63
$4.14
$.26
.792 .66215 .648 .72675 .57056 .66976 4. Net price factor 5 .85 3 .90 3 .95 5 .72675
Net price 5 979.20 3 .72675
5 $711.63
Net Price
Net Price Factor
2. Net price factor 5 .82 3 .85 3 .95 5 .66215
Net price 5 425.80 3 .66215
5 $281.94
Net price 5 360.00 3 .792
100%
1. Net price factor ⫽ 100%
⫺12% ⫺10%
.88 ⫻ .90 ⫽ .792
1. $360.00
2. 425.80
3.
81.75
4. 979.20
5.
7.25
6.
.39
List Price
Calculate the following net price factors and net prices. For convenience, round net
price factors to five decimal places when necessary:
T7-12
REVIEW EXERCISES
|
CHAPTER 7—SECTION III
7.
8.
9.
10.
11.
Single
Equivalent
Discount
.235 .4016 .40712 .36825 .48894 Net Price
Factor
.765 .5984 .59288 .63175 .51106 Trade
Discount
Rates
15/10
20/15/12
25/15/7
30/5/5
35/15/7.5
.85
.80
.75
.70
.65
3
3
3
3
3
.90
.85
.85
.95
.85
3
3
3
3
5
.88 5
.93 5
.95 5
.925 5
.765
.5984
.59288
.63175
.51106
Net Price Factor
1.00
1.00
1.00
1.00
1.00
2
2
2
2
2
.765 5
.5984 5
.59288 5
.63175 5
.51106 5
.235
.4016
.40712
.36825
.48894
Single Equivalent Discount
Calculate the following net price factors and single equivalent discounts. Round to five
places when necessary.
T7-13
REVIEW EXERCISES
|
CHAPTER 7—SECTION III
1.00 2 .76713
.23287
.85 3 .95 3 .95
.76713
.76713 .6324 .60563 .65666 .7128 .5292 $7,800.00
3 .23287
$1,816.39
Trade
Discount
.23287 .3676 .39437 .34334 .2872 .4708 Net Price
Factor
Net Price
Factor
12. $7,800.00
13. 1,200.00
14.
560.70
15.
883.50
16.
4.89
17. 2,874.95
Single
Equivalent
Discount
Single
Equivalent
Discount
15/5/5
20/15/7
25/15/5
18/12/9
12/10/10
30/20/5.5
List Price
12.
Trade
Discount
Rates
$7,800.00
3 .76713
$5,983.61
Net Price
$1,816.39
$441.12
$221.12
$303.34
$1.40
$1,353.53
Trade
Discount
$5,983.61
$758.88
$339.58
$580.16
$3.49
$1,521.42
Net Price
Complete the following table. Round net price factors to five decimal places when
necessary.
T7-14
T7-15
REVIEW EXERCISES | CHAPTER 7—SECTION I I I
18. What is the net price factor of a 25/10 series of trade discounts?
25/10 : .75 3 .90
Net price factor 5 0.675
19. What is the net price factor of a 35/15/10 series of discounts?
35/15/10 : .65 3 .85 3 .90
Net price factor 5 0.49725
20. Toy Town orders toys, games, and videos with a list price of $10,300 less trade discounts of 25/15/12.
a. What is the net price factor?
Net price factor 5 .75 3 .85 3 .88 5 0.561
b. What is the net price of the order?
Net price 5 10,300.00 3 .561 5 $5,778.30
21. Contempo Designs places an order for furniture listing for $90,500 less trade discounts
of 25/20.
a. What is the net price factor?
Net price factor 5 .75 3 .80 5 .6
b. What is the net price of the order?
Net price 5 90,500.00 3 .6 5 $54,300.00
T7-16
REVIEW EXERCISES | CHAPTER 7—SECTION I I I
22. If a supplier offers you trade discounts with a net price factor of .5788, what is the
single equivalent discount?
Single equivalent discount 5 1.00 2 .5788 5 .4212
23. A vendor offers trade discounts of 25/15/10.
a. What is the net price factor?
Net price factor 5 .75 3 .85 3 .90 5 .57375
b. What is the single equivalent discount?
Single equivalent discount 5 1.00 2 .57375 5 .42625
24. Audio Giant received an order of satellite radios listing for $9,500 and trade discounts
of 25/13/8.
a. What is the net price factor?
Net price factor 5 .75 3 .87 3 .92 5 .6003
b. What is the single equivalent discount?
Single equivalent discount 5 1.00 2 .6003 5 .3997
c. What is the amount of the trade discount?
Trade discount 5 9,500.00 3 .3997 5 $3,797.15
d. What is the net price of the order?
Net price 5 9,500.00 3 .6003 5 $5,702.85
T7-17
REVIEW EXERCISES | CHAPTER 7—SECTION I I I
25. Shari’s Boutique is offered a line of blouses that list for $700 per dozen from a clothing manufacturer. They are offering trade discounts of 35/25/5.
a. What is the net price per dozen Shari will pay for the blouses?
.65 3 .75 3 .95 5 .46313 3 700.00 5 $324.19 Per dozen
b. What is the single equivalent discount of this deal?
Single equivalent discount 5 1.00 2 .46313 5 .53687
26. The Speedy Auto Service Center can buy auto parts from Southeast Auto Supply at
a series discount of 20/15/5 and from Northwest Auto Supply for 25/10/8.
a. Which auto parts supplier offers a better deal to Speedy?
Southeast
Northwest
.80 3 .85 3 .95 5 0.646
Single equivalent discount 5 1.00 2 .646
5 .354
Northwest offers a better discount.
.75 3 .90 3 .92 5 .621
Single equivalent discount 5 1.00 2 .621
5 .379
b. If Speedy orders $15,000 in parts at list price per month, how much will they save
in a year by choosing the lower-priced supplier?
Southeast
Northwest
$15,000.00 3 .646
5 $9,690.00
$15,000.00 3 .621
5 $9,315.00
9,690.00
29,315.00
$375.00 3 12 5 $4,500.00 Savings per year
27. Toshiba offers wholesalers a series discount of 35/20/20 and retailers a series discount
of 35/20. A television set has a list price of $560.
a. What is the price the wholesaler pays?
.65 3 .80 3 .80 5 0.416
$560.00 3 .416 5 $232.96
b. What is the price to the retailer?
.65 3 .80 5 .52
$560 3 .52 5 $291.20
T7-18
REVIEW EXERCISES | CHAPTER 7—SECTION I I I
28. Taylor Pharmacy buys merchandise from B. G. Distributors with a series discount of
35/15/7.
a. What is the single equivalent discount?
.65 3 .85 3 .93 5 .51383
1.00 2 .51383 5 .48617
b. What is the amount of the trade discount on an order with a list price of $5,700?
$5,700.00 3 .48617 5 $2,771.17
29. Certified Food Distributors received the following items at a
discount of 25/20/10: 18 cases of canned peaches listing at $26.80
per case and 45 cases of canned pears listing at $22.50 per case.
a. What is the total list price of this order?
$26.80 3 18 5 $ 482.40
$22.50 3 45 5 $1,012.50
Total list price $1,494.90
b. What is the amount of the trade discount?
.75 3 .80 3 .90 5
.54 Net price factor
1.00 2 .54 5
.46 Single equivalent discount
1494.90 3 .46 5 $687.65 Trade discount
c. What is the net price of the order?
Net price 5 $1,494.90 3 .54 5 $807.25
REVIEW EXERCISES
|
CHAPTER 7—SECTION III
Unit
ea.
ea.
doz.
doz.
Quantity
150
400
18
12
$ 59.95
39.88
244.30
460.00
Unit List
20/15/15
20/10/10
30/9/7
25/10/5
Invoice subtotal
5,197.67
10,336.90
2,605.06
3,539.70
21,679.33
Extended
Total
Juicers 12 3 460 3 .64125 5 $ 3,539.70
Coffee mills 18 3 244.30 3 .59241 5 $ 2,605.06
Toasters 400 3 39.88 3 .648 5 $10,336.90
Blenders 150 3 59.95 3 .578 5 $ 5,197.67
1
Extra 5 % volume discount on total order 21,192.36
2
Invoice total 20,486.97
Blenders
Toasters
Coffee Mills
Juicers
Merchandise
Trade
Discounts
Co
30. Shopper’s Mart purchased the following items. Calculate the extended total after the
trade discounts for each line, the invoice subtotal, and the invoice total:
T7-19
T7-20
BUSINESS DECISION | CHAPTER 7—SECTION I I I
NEGOTIATE AND SAVE
31. Referring back to Exercise 30, you have just been hired as the new buyer for the kitchen
division of Shopper’s Mart, a general merchandise retailer. After looking over the discounts offered to the previous buyer by the vendor, you decide to ask for better discounts.
After negotiating with the vendor’s salesperson, you now can buy blenders at trade
discounts of 20/20/15, and juicers at 25/15/10. In addition, the vendor has increased the
volume discount to 6 12%.
a. How much would have been saved with your new discounts, based on the quantites of the previous order (Exercise 30)?
Blenders 4,891.92
20,486.97 Original net
Toasters 10,336.90 219,635.92 New net
Coffee mills 2,605.06
$851.05 Savings
Juicers 3,167.10
21,000.98
1
26 % 1,365.06
2
19,635.92
b. As a result of your negotiations, the vendor has offered an additional discount of
2% of the total amount due if the invoice is paid within 15 days instead of the
usual 30 days. What would be the amount of this discount?
19,635.92 3 .02 5 $392.72
REVIEW EXERCISES
|
CHAPTER 7—SECTION IV
9,121.44
$319.25
3 12 /15, n/60
$8,802.19
$15,326.00
$12,406.80
$2,324.16
$6,801.40
$474.00
$253.20
$96.84
$138.80
n/30
n/45
n/30
n/30
3/15,
2/10,
4/10,
2/10,
Net
Amount Due
Cash
Discount
Terms of
Sale
6. $8,303.00
7. 1,344.60
8. 5,998.20
9. 7,232.08
Amount of
Invoice
2/10, n/30
3/10, n/45
4/15, n/60
4 12 /20, n/45
Terms of
Sale
$2,500
460
3,200
5,500
Partial
Payment
$2,551.02
$474.23
$3,333.33
$5,759.16
$5,751.98
$870.37
$2,664.87
$1,472.92
Credit for
Net
Partial Payment Amount Due
For the following transactions, calculate the credit given for the partial payment and
the net amount due on the invoice:
5.
1. $15,800.00
2. 12,660.00
3.
2,421.00
4.
6,940.20
Amount of
Invoice
Calculate the cash discount and the net amount due for each of the following transactions:
T7-21
5. CD 5 $9,121.44 3 .035 5 $319.25
NAD 5 $9,121.44 2 $319.25 5 $8,802.19
4. CD 5 $6,940.20 3 .02 5 $138.80
NAD 5 $6,940.20 2 $138.80 5 $6,801.40
3. CD 5 $2,421.00 3 .04 5 $96.84
NAD 5 $2,421.00 2 $96.84 5 $2,324.16
2. CD 5 $12,660.00 3 .02 5 $253.20
NAD 5 $12,660.00 2 $253.20 5 $12,406.80
|
CHAPTER 7—SECTION IV
$5,500
5 $5,759.16
.955
NAD 5 $7,232.08 2 $5,759.16 5 $1,472.92
9. Credit for partial payment 5
8. Credit for partial payment 5
$3,200
5 $3,333.33
.96
NAD 5 $5,998.20 2 $3,333.33 5 $2,664.87
$460
5 $474.23
.97
NAD 5 $1,344.60 2 $474.23 5 $870.37
7. Credit for partial payment 5
6. Credit for partial payment 5
$2,500
5 $2,551.02
.98
NAD 5 $8,303.00 2 $2,551.02 5 $5,751.98
REVIEW EXERCISES
1. CD 5 $15,800.00 3 .03 5 $474.00
NAD 5 $15,800.00 2 $474.00 5 $15,326.00
T7-22
REVIEW EXERCISES
|
CHAPTER 7—SECTION IV
10.
11.
12.
13.
14.
Terms of Sale
2/10, n/45
3/15, n/60
3/20, n/45
2/10, 1/20, n/60
4/25, n/90
Date of Invoice
November 4
April 23
August 11
January 29
July 8
Nov. 14 May 8 Aug. 31
2%
1%
Feb.
8, Feb. 18
Aug. 2
Discount Date(s)
Dec. 19
June 22
Sept. 25
Mar. 30
Oct. 6
Net Date
Using the ordinary dating method, calculate the discount date and the net date for the
following transactions:
T7-23
REVIEW EXERCISES
|
CHAPTER 7—SECTION IV
18. February 11
19. May 18
20. October 26
15. December 5
16. June 27
17. September 1
Date of Invoice
2/10, EOM
3/15, EOM
3/20, ROG
Rec’d Oct. 3
2/10, 60 Extra
4/25, EOM
2/10, ROG
Rec’d Nov. 27
Terms of Sale
Dec. 27 Dec. 7
Nov. 12 May 12 July 15 Oct. 23 Apr. 22 June 25 Jan. 30
Sept. 4
Net Date
Jan. 10 Aug. 15 Discount Date
Using the EOM, ROG, and Extra dating methods, calculate the discount date and the
net date for the following transactions. Unless otherwise specified, the net date is 20
days after the discount date:
T7-24
T7-25
REVIEW EXERCISES | CHAPTER 7—SECTION I V
21. The Apollo Company received an invoice from a vendor on April 12 in the amount
of $1,420.00. The terms of sale were 2/15, n/45. The invoice included freight charges
of $108. The vendor sent $250 in merchandise that was not ordered. These goods will
be returned by Apollo. (Remember, no discounts on freight or returned goods.)
a. What are the discount date and the net date?
Discount date
Net date
April 12 1 15 days 5 April 27
April 12 1 45 days 5 May 27
b. What is the amount of the cash discount?
Cash discount $1,420.00 2 $108.00 2 $250.00 5 $1,062.00
1,062.00 3 .02 5 $21.24
c. What is the net amount due?
$1,062.00 2 $21.24 5 $1,040.76
1 108.00 Freight
Net amount due
$1,148.76
22. An invoice is dated August 29 with terms of 4/15 EOM.
a. What is the discount date?
October 15
b. What is the net date?
October 15 1 20 days 5
November 4
23. An invoice dated January 15 has terms of 3/20 ROG. The goods are delayed in shipment and arrive on March 2.
a. What is the discount date?
March 22
b. What is the net date?
March 22 1 20 days 5 April 11
T7-26
REVIEW EXERCISES | CHAPTER 7—SECTION I V
24. What payment should be made on an invoice in the amount of $3,400 dated August
7 if the terms of sale are 3/15, 2/30, n/45 and the bill is paid on
a. August 19?
August 7 to August 19 5 12 days This is within 3% discount period.
$3,400.00 3 .03
5 $102.00
$3,400.00 2 $102.00 5 $3,298.00 on August 19
b. September 3?
August 7 to September 3 5 27 days This is within 2% discount period.
$3,400.00 3 .02 5 $68.00
$3,400.00 2 $68.00 5 $3,332.00 on September 3
25. City Cellular purchased $28,900 in camera phones on April 25. The terms of sale were
4/20, 3/30, n/60. Freight terms were F.O.B. destination. Returned goods amounted to
$650.
a. What is the net amount due if City Cellular sends the manufacturer a partial
payment of $5,000 on May 20?
April 25 to May 20 5 25 days This is within 3% discount period.
$28,900.00 2 $650.00 5 $28,250.00 Invoice less returns
5,000.00
Partial payment credit 5
5 $5,154.64
.97
$28,250.00 2 $5,154.64 5 $23,095.36 Net due
b. What is the net date?
April 25 1 60 days 5 June 24
Net date 5 June 24
c. If the manufacturer charges a 4 12% late fee, how much would City Cellular owe if
they did not pay the balance by the net date?
Net due on net date 5 $23,095.36
$23,095.36 3 .045 5 $1,039.29 Late fee
1 1,039.29
$24,134.65 Net due after net date
T7-27
BUSINESS DECISION | CHAPTER 7—SECTION I V
T7-28
BUSINESS DECISION | CHAPTER 7—SECTION I V