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Determine the cost of giving up the cash discount under each of the following terms of sale. (Note: Assume a 365-day year.)
a. 2/10 net 30
b. 1/10 net 30
c. 2/10 net 45
d. 3/10 net 45
e. 1/10 net 60
f. 3/10 net 30
g. 4/10 net 180
Reports should provide a basis for measuring the return on investment for each division. Thus, in addition to revenue and expense accounts, reports should show assets assigned to each division.
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