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What are some possible advantages to accepting this offer? A manufacturing company...

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yacel0762 | (Level 1) Valedictorian

Posted May 28, 2013 at 1:40 AM via web

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What are some possible advantages to accepting this offer?

A manufacturing company requires a minimum order of $5,000 at cost, offers terms of 3/10, net 30, and does not provide transportation costs. Transportation costs may be estimated at approximately $4.50 per dozen garments. There is a rumor, however, that there may be a trucking strike at the manufacturing company by independent truck lines. The manufacturing comapny is willing to participate in a cooperative advertising program. This Los Angeles firm assures the merchandise will be in stock and available for reorder.

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Kay Morse | College Teacher | (Level 1) Senior Educator

Posted May 28, 2013 at 8:27 PM (Answer #1)

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One obvious advantage to accepting this offer is that it excludes transportation costs thus the delivery terms will be unaffected by any upcoming truckers' strike.

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