Cadwell, Inc., a regional business computer sales firm is attempting to sell a convenience store chain, Gas 'N' Go, a new computer-operated pump meter. Terry Williams, owner of the convenience stores, seems interested in Cadwell's initial proposal but believes the price may be too high. The cost per computer is $1,000, but Cadwell could sell Williams 50 computers for $45,000 with terms of the sale being 2/10 net 30. Williams purchases 50 computers and pays for them five days after the purchase, so his ________ is $882.
A. cash discount
B. breakeven cost
C. trade discount
D. unit cost
E. gross profit
Answer: D
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