James on the Pond needs to purchase new sterling flatware. The owner finds three

Question

James on the Pond needs to purchase new sterling flatware. The owner finds three patterns she likes from two separate vendors. Which is the better deal? Show all work.

15 sets of pattern A: List price $400 each set
15 sets of pattern B: List price $600 for set
15 sets of pattern C: List price $800 for set

Vendor A:
Trade discounts from list price: 40%, less 25%, less 5%
quantity discounts offered: none.
Cash discount: 2/10, n/30
FOB: Factory/shipping charges are running 0.5% of final cost.

Vendor B:
Trade discount from list price: 50%, less 20%, less 5%
Quantity discount: 1% for orders over $10.000, 1.5% for orders over $15,000; and 2% for orders over $20,000
cash discount: 2/10-60X, shipping is FOB store

Explanation / Answer

Vendor B: Trade discount from list price: 50%, less 20%, less 5% Quantity discount: 1% for orders over $10.000, 1.5% for orders over $15,000; and 2% for orders over $20,000 cash discount: 2/10-60X, shipping is FOB store

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.