Extracted data from Penguin plc’s last accounts are as follows:

A major supplier to Penguin offers a discount of 2 per cent on all future supplies if payment is made on the seventh day following delivery rather than the present 70th day. Monthly purchases from this supplier amount to a regular £0.8m.

Penguin pays 15 per cent annual percentage rate on its overdraft.

Required

Consider what Penguin should do with respect to this supplier.

Extracted data from Penguin plc s last accounts are as follows A

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now