Purchase-Related Transactions
A retailer is considering the purchase of 500 units of a specific item from either of two suppliers. Their offers are as follows:
Supplier One: $40 a unit, total of $20,000, 1/10, n/30, no charge for freight.
Supplier Two: $39 a unit, total of $19,500, 2/10, n/30, plus freight of $500.
Price of Supplier One:
Price of Supplier Two:
Which of the two offers, Supplier One or Supplier Two, yields the lower price?
