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When GM Purchases 500 Tonnes of Sheet Metal for Their

Question 95

Multiple Choice

When GM purchases 500 tonnes of sheet metal for their manufacturing line, the cost is $0.10 per tonne. However, when they purchase 750 tonnes, the price becomes $0.05 per tonne. GM is receiving a(n) _________from the sheet metal manufacturer.


A) penetration prices
B) promotional allowances
C) quantity discounts
D) one-price policy prices

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