Question

The formula used by a supplier with discounts, taxes, freight, etc. is:

• A. Supply formula
• B. Purchase formula
• C. Market formula
• D. Sales formula

Hint:

The market formula incorporates all cost factors, including discounts, taxes, and freight, to determine a competitive final price.

Answer 1

The Correct Option is C

The market formula is used by suppliers to determine the final price of a product, taking into account various factors such as discounts, taxes, and freight charges. It helps calculate the price that is competitive in the market while covering the supplier’s costs.