157k views
1 vote
A company purchased $11900 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. What is the total amount the company needs to pay if they take advantage of the discount?

1) $11900
2) $11662
3) $11702
4) $11880

User Izak
by
8.5k points

1 Answer

3 votes

Final answer:

The total amount the company needs to pay if they take advantage of the discount is $11662.

Step-by-step explanation:

Based on the given information, the terms of the purchase are 2/10, n/45, and FOB shipping point. The first part, 2/10, means that the company can take a 2% discount if the payment is made within 10 days. The second part, n/45, means that the company has 45 days to make the payment. FOB shipping point means that the buyer is responsible for the shipping costs. To calculate the total amount the company needs to pay if they take advantage of the discount, we first subtract the discount from the total purchase amount. The discount is 2% of $11900, which is $238. So the total amount the company needs to pay after taking the discount is $11900 - $238 = $11662.

User Subhojit
by
7.7k points