Paul Smith is opening a plumbing supply store in University City .He plans to sell plumbing parts and material to both wholesale and retail customers. Since contactorors prefer to charge parts and materials and pay at the end of the month, Paul expects he will have to offer charge accounts. He plans to offer charge sale to wholesale customers only and to require retail customers to pay with eighter cash or credit cards. Paul wondered what expenses his business would incur relative to the sales and the credit cards.

I have no idea! I've never taken a business class.

Well I've never taken a business class... but I think it would depend on the sales coming from wholesale or retail. If there was more wholesale, he would have to incur more expenses initially due to the fact that he wouldn't get paid until the end of the month, therefore he'd have to pay more to get more supplies for retail sale, without getting paid beforehand. However this is only initial as he would get paid at the end of the month, so the profit would still be the same ratio.

However if retail sales were more then there wouldn't be much of a problem. Still he'd face the same problem mentioned above, but due to the fact that he gets paid upfront, he'd have the necessary capital to buy more supplies, without having to raise more funds.

Again, never took a business class, but seems to make sense to me.

Also I was a DECA International Competitor... So I know a bit

To determine the expenses that Paul Smith's plumbing supply store would incur relative to sales and credit cards, we need to consider a few factors:

1. Wholesale Customers with Charge Accounts:
- There may be expenses associated with providing charge accounts to wholesale customers, such as setting up credit check systems or hiring personnel to manage the accounts.
- There could be costs related to processing and tracking the invoices, keeping records, and managing any outstanding payments or collection efforts.

2. Retail Customers Paying with Cash:
- If retail customers pay with cash, there might be cash handling and security costs, such as providing change, acquiring a cash register, or implementing safety measures to prevent theft or fraud.

3. Retail Customers Paying with Credit Cards:
- When retail customers pay with credit cards, the business incurs fees associated with the processing of those transactions.
- Credit card processing fees typically include a percentage of the sale amount (known as the discount rate) and a fixed fee per transaction.
- The specific fees can vary depending on the credit card processing provider, the type of cards accepted, and the negotiated terms with the payment processor.

To get more accurate and detailed information about the exact expenses for Paul's plumbing supply store, it is advisable to consult with financial experts, speak to credit card processing providers, and research industry averages for related expenses.