4.RST Co. sold for $6,000 inventory that had cost $4,000. Freight terms for the sale were FOB destination and payment terms were 1/10, n/30. RST records sales transactions at the net amount. RST paid freight costs of $200 in cash. The receivable was collected within the discount period. Based on this information alone, the amount of gross margin would be a.$1,940. b.$1,740. c.$1,800. d.$2,000.

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.