ssighmeRtMain.do?invoker assignments8ttake sionLocator-assignment-takeBinpr...Q

Question

ssighmeRtMain.do?invoker assignments8ttake sionLocator-assignment-takeBinpr...Q eBook Calculator Purchase-Related Transactions A retailer is considering the purchase of 250 units of a specific item from either of two suppliers. Their offers are as follows Supplier One: $400 a unit, total of $100,000, 1/10, n/30, no charge for freight. Supplier Two: $399 a unit, total of $99,750, 2/10, n/30, plus freight of $975, Price of Supplier One: Price of Supplier Two: Which of the two offers, Supplier One or Supplier Two, yields the lower price?

Explanation / Answer

Answer:

1

Price of the supplier one

Net value after disocount

=Total offer value- discount

=100,000 - (100,000*1%)

=100,000-1000

=$99,000

Price of the supplier>

_________________________________

2

Price of the supplier two

Net value after disocount

=Total offer value- discount + fright

=99,750 - (99750*2%)+975

=$98,730

Price of the supplier>

______________________________________

Which of the two offers, Supplier One or Supplier Two, yields the lower price?

Answer: Supplier Two is yielding the lower price