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28 Nov 2024, 15:33
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Shipping from Supplier A: $125
Shipping from Supplier B: $725
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
82% (02:29) correct
18%
(02:33)
wrong
based on 289
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You have the option to order wallboard from either of two suppliers with the same basic price per four-by-eight-foot sheet of wallboard. Supplier A is located in state and must apply the 6% state sales tax to your order. Supplier B ships from out of state, where no sales tax applies to orders for construction materials. Because of the distance, Supplier B charges more for shipping than Supplier A charges. If an order totaling $10,000 before tax and shipping costs results in the same charge from either supplier, find each supplier’s shipping cost for such an order.
| Shipping from Supplier A | Shipping from Supplier B | |
| $85 | ||
| $125 | ||
| $325 | ||
| $450 | ||
| $600 | ||
| $725 |
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Official Answer
Shipping from Supplier A: $125
Shipping from Supplier B: $725
29 Nov 2024, 11:00
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1. Let's create a general formula for the total cost: Total Cost = Order Cost \(*\) (1 + State Sales Tax(%)) + Shipping Cost.
2. Now we can use it for both suppliers.
- Supplier A: Total Cost = 10000 \(*\) 1.06 + Shipping Cost(A)
- Supplier B: Total Cost = 10000 \(*\) 1 + Shipping Cost(B)
3. Lastly, it is known that the Total Cost is the same. So: 10000 \(*\) 1.06 + Shipping Cost(A) = 10000 \(*\) 1 + Shipping Cost(B) \(\rightarrow\) Shipping Cost(B) - Shipping Cost (A) = 600.
4. The only options that have a difference of 600 are $725 and $125.
5. Our answer will be: Shipping from Supplier A - $125 and Shipping from Supplier B - $725.
2. Now we can use it for both suppliers.
- Supplier A: Total Cost = 10000 \(*\) 1.06 + Shipping Cost(A)
- Supplier B: Total Cost = 10000 \(*\) 1 + Shipping Cost(B)
3. Lastly, it is known that the Total Cost is the same. So: 10000 \(*\) 1.06 + Shipping Cost(A) = 10000 \(*\) 1 + Shipping Cost(B) \(\rightarrow\) Shipping Cost(B) - Shipping Cost (A) = 600.
4. The only options that have a difference of 600 are $725 and $125.
5. Our answer will be: Shipping from Supplier A - $125 and Shipping from Supplier B - $725.
