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...

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.

Asked on by yacel0762

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Karyth Cara | College Teacher | (Level 1) Senior Educator

Posted on

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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