Garber Plumbers offers a 20% trade discount when providing $2,000 or more of plumbing services to its customers. In March 2021, Garber provided $4,000 of plumbing services to Red Oak Inc., and $1,500 of services to Cyril Inc. Each of these customers was granted credit terms of 2/10, net 30. If both customers paid for the plumbing services within the discount period, what was the net revenues amount for these two transactions?a. $5,500
b. $4,312
c. $4,486
d. $4,606

Option D. $4,606

Explanation:

The reason is that the trade discount is 20% on sales above $4000.

This means the sales made to Red Oak Inc. = $4000 * (1-20%) = $3,200

This 20% discount is not available on sales of $1,500 made to Cyril Inc. as the sales are below $,4000.

So total sales before considering settlement discount = $3,200 + $1,500

= $4,700

The settlement discount is available on both of these transaction because the customer have to pay within the discount period to avail this benefit. So the settlement discount here is 2%, if the customer pays within the discount period and has been calculated as under:

Settlement Discount = $4,700 * 2% = $94

Net Sales = $4,700 - $94 = $4,606

Hence the correct answer is option D.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.