Question

The president of Global Wholesalers would like to offer special sale prices to the firm's best customers under the following terms:______

1. The prices will apply only to units purchased in excess of the quantity normally purchased by a customer.
2. The units purchased must be paid for in cash at the time of sale.
3. The total quantity sold under these terms cannot exceed the excess capacity of the firm.
4. The net profit of the firm should not be affected.
5. The prices will be in effect for one week only.

Answer 1

Correct Answer:

1. The prices will apply only to units purchased in excess of the quantity normally purchased by a customer.

Step-by-step explanation:

This is because, the excess of the product purchased by the customer would be deemed eligible for special sales price. For example, Customer A use to purchase product B, 400 pieces each month.

In the month the sales prices started, he purchased 900 pieces of same product. Then, the special sales price would apply to 500 pieces of the product which was extra quantity he bought aside his regular quantity.