Scenario 20.2
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China.
-Refer to Scenario 20.2.BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days,the buyer will receive a rebate of 5 percent.This type of pricing would be an example of ____ discounts.
A)allowance
B)cash
C)seasonal
D)noncumulative
E)cumulative

Question

Quizplus · Accepted Answer

This type of discount is cumulative, meaning that the discount percentage increases with the amount a customer spends. In this case, for every $100,000 spent, the buyer will receive a rebate of 5%.

Scenario 20.2 Use the Following to Answer the Questions