Homework SourseJames on the Pond needs to purchase new sterling flatware Th
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
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
Solution
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
