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Dixie Tours Inc

Question 95

Multiple Choice

Dixie Tours Inc.buys on terms of 2/15,net 30.It does not take discounts,and it typically pays 35 days after the invoice date.Net purchases amount to $720,000 per year.What is the approximate percentage cost of its non-free trade credit?


A) 17.2%
B) 23.6%
C) 26.1%
D) 36.7%
E) 50.6%

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