Question

A firm that manufactures TVs sells them at prices of $750, $1,000, and $1,250. The manufacturer will return $75, $100, or $125 respectively, by mail, to those who purchase its brand of TV. This reduction in price is an example of a:a. promotion allowance.

b. trade-in.
c. rebate.
d. quantity discount.

Answer 1

The correct answer is C

Step-by-step explanation:

Rebate is the term which is defined or described as the partial or some amount of refund to the person who has paid the money.

So, in this case, firm sold the Tv to the manufactures at the price of $1,000, $750 and $1,250. But then the manufacturer return the amount that is $100, $75 and $125 to those who purchased the TV. Therefore, the reduction or decrease in the price is an example of the rebate.