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Rob McMillan is an independent fuel oil and propane distributor and wholesale fuel prices were...

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Accounting

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Rob McMillan is an independent fuel oil and propane distributor and wholesale fuel prices were higher than normal. Rob's last invoice showed that fuel oil was priced at $3.425 per gallon, with trade discounts of 7/5/15 available. McMillan Oll offers its own customers credit terms of 2/15, net/30, with a 2% service charge on late payments. Of the $30,000 in average fuel oil sales per month, normally half of Rob's sales are paid within the discount period, and only 10% incur the monthly service charge. Rob is concerned because a number of his fuel oil customers are behind in their payments, and he is considering some changes. Complete parts 1-4 below. 2 Rob is considering purchasing his fuel oil from a new supplier offering fuel oil at $3.939 per gallon, but with a better trade discount series of 9/8/3. Compared to your answers in Exercise 1, which supplier would be a better deal for his company? A the new supplier B. the original supplier 3 Using the average monthly sales of $30,000, what is the total savings enjoyed by those fuel oil customers who normally pay within the discount period

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