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09 Nov 2023, 06:09
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Smallest value of an order from Supplier
A for which Supplier B would be cheaper: $369.64
A for which Supplier B would be cheaper: $369.64
Supplier B’s charge for a
$401.50 order from Supplier A: $400.42
$401.50 order from Supplier A: $400.42
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
42% (03:41) correct
58%
(03:56)
wrong
based on 185
sessions
History
Date
Time
Result
Not Attempted Yet
McGraw-Hill
Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.
Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?
Data Insights (DI) Butler 2023-24 [Question #100, Date: Nov-09-2023] [Click here for Details]
Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.
Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?
|
Smallest value of an order from Supplier A for which Supplier B would be cheaper |
Supplier B’s charge for a $401.50 order from Supplier A |
|
| $357.00 | ||
| $369.64 | ||
| $388.00 | ||
| $400.42 | ||
| $401.50 | ||
| $414.00 |
ShowHide Answer
Official Answer
Smallest value of an order from Supplier
A for which Supplier B would be cheaper: $369.64
A for which Supplier B would be cheaper: $369.64
Supplier B’s charge for a
$401.50 order from Supplier A: $400.42
$401.50 order from Supplier A: $400.42
09 Nov 2023, 11:16
Kudos
Bookmarks
(A) Smallest value of an order from Supplier A for which Supplier B would be cheaper
All values are in the range excess of $350; so, the shipping cost (Supplier B) will be $12.50
Smallest value of an order from Supplier A for which Supplier B would be cheaper;
implies
3.5 % excess value (in case of Supplier A) = Shipping charge (Supplier )
ie, 3.5 % of item price = $12.50
Item price = $12.50 / 0.0350
= $357.14
Hence, Order value = $357.14 + 12.50
= $369.64
(B) Supplier B’s charge for a $401.50 order from Supplier A
If Supplier A charges $401.50 for the order ; then
Item price = $401.50 / 1.0350 (since, the order cost will be 3.5% excess for Supplier A)
= $387.92
Hence,
Order Cost for Supplier B = $387.92 + $12.50 (ie, Shipping charge)
= $400.42
All values are in the range excess of $350; so, the shipping cost (Supplier B) will be $12.50
Smallest value of an order from Supplier A for which Supplier B would be cheaper;
implies
3.5 % excess value (in case of Supplier A) = Shipping charge (Supplier )
ie, 3.5 % of item price = $12.50
Item price = $12.50 / 0.0350
= $357.14
Hence, Order value = $357.14 + 12.50
= $369.64
(B) Supplier B’s charge for a $401.50 order from Supplier A
If Supplier A charges $401.50 for the order ; then
Item price = $401.50 / 1.0350 (since, the order cost will be 3.5% excess for Supplier A)
= $387.92
Hence,
Order Cost for Supplier B = $387.92 + $12.50 (ie, Shipping charge)
= $400.42
27 Aug 2024, 08:47
Kudos
Bookmarks
for 369.64 both would ultimately cost the same...not cheaper right?
103.5x = 369.64
100x=357.14
plus shipping 12.5 gives 369.64
103.5x = 369.64
100x=357.14
plus shipping 12.5 gives 369.64
