Mike Morgan, a sales representative for a major food service distributor of Betty Crocker's Warm Delights, wanted to encourage larger purchases by his grocery customers. Morgan offered 10 percent discount for buying 1 to 49 cases of Warm Delights within a calendar month, 12 percent for 50 to 99 cases, and 15 percent for 100 or more cases. What type of discount was Morgan offering his customers?
A) a seasonal discount
B) a quantity discount
C) a cash discount
D) a trade discount
E) a case allowance discount

Question

Quizplus · Accepted Answer

Quantity discounts are offered to customers who purchase large quantities of a product. In this case, Morgan is offering a 10 percent discount for buying 1 to 49 cases of Warm Delights within a calendar month, 12 percent for 50 to 99 cases, and 15 percent for 100 or more cases. This is a quantity discount because the discount is based on the quantity of product purchased.

Mike Morgan, a Sales Representative for a Major Food Service