A dealer buys tooling machines from a manufacturer and resells them to its customers.
a. The manufacturer sets a list or catalogue price of $12,000 for a machine. The manufacturer offers its dealers a 40 percent trade discount.
b. The manufacturer sells the machine under terms of FOB shipping point. The cost of shipping is $700.
c. The manufacturer offers a sales discount of 2/10, n/30. The sales discount does not apply to shipping costs.
What is the net cost of the machine to the dealer, assuming it is paid for within 10 days of purchase?