When GM purchases 500 tonnes of sheet metal for their manufacturing line, the cost is $0.10 per tonne. However, when they purchase 750 tonnes, the price becomes $0.05 per tonne. GM is receiving a(n) ____________ from the sheet metal manufacturer.

When GM purchases 500 tonnes of sheet metal for their manufacturing line, the cost is $0.10 per tonne. However, when they purchase 750 tonnes, the price becomes $0.05 per tonne. GM is receiving a(n) ____________ from the sheet metal manufacturer.

When GM purchases 500 tonnes of sheet metal for their manufacturing line, the cost is $0.10 per tonne. However, when they purchase 750 tonnes, the price becomes $0.05 per tonne. GM is receiving a(n) ____________ from the sheet metal manufacturer.



A.

promotional allowances


B.

quantity discounts


C.

one-price policy prices


D.

penetration prices



Answer: B


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