Jasper Company is a wholesaler that buys merchandise in large quantities. Its supplier's catalog indicates a list price of $500 per unit on merchandise Jasper intends to purchase, and offers a 30% trade discount for large quantity purchases. The cost of shipping for the merchandise is $7 per unit. Jasper's total purchase price per unit will be:
A. $507
B. $343
C. $157
D. $357
E. $350
Answer: D
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A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent?
A) cross coupon B) product placement coupon C) trade promotion coupon D) freestanding coupon E) online coupon
The net book value of a fixed asset is determined by
A) Original cost less accumulated depreciation B) Original cost less depreciation expense C) Original cost less accumulated depreciation plus depreciation expense D) Original cost plus accumulated depreciation
A cost that will not be affected by later decisions is termed an opportunity cost
Indicate whether the statement is true or false
Warren Buffett, the famed stock market investor, recommends
a. buying only when you can calculate a margin of safety based on current assets and earnings b. only buying stock in companies that make products you understand c. fast action and acting on intuition to avoid “paralysis by analysis” d. both “a” and “b”