Steri-strips cost $4.95 per box, there are 100 per box. If an orthopedic surgical group uses 200 Steri-strips a month, how much would be saved in a year by making a single purchase for a year's supply rather that 12 monthly purchases.If large lots of 1,000 or more, the manufacturer allows a discount of 15%.
Yrly is cheaper by 17.82
First, let's find out how many boxes are needed for a year's supply:
200 Steri-strips per month * 12 months = <<200*12=2400>>2,400 Steri-strips per year.
Now, let's find out how many boxes are needed:
2,400 Steri-strips / 100 per box = <<2400/100=24>>24 boxes.
Now let's find out the cost for 24 boxes without discount:
24 boxes * $4.95 per box = $<<24*4.95=118.8>>118.8.
Now let's find out the discount:
$118.8 * 15% = $<<118.8*0.15=17.82>>17.82.
Now let's find out the cost for 24 boxes with the discount:
$118.8 - $17.82 = $<<118.8-17.82=100.98>>100.98.
Now let's find out the cost of 12 monthly purchases without discount:
$118.8 * 12 = $<<118.8*12=1425.6>>1,425.6.
The yearly purchase with the discount saves:
$1,425.6 - $100.98 = $<<1425.6-100.98=1324.62>>1,324.62.
Therefore, the savings amount to $1,324.62 per year.
To calculate the savings, we'll first find the cost of 200 Steri-strips per month for 12 months, and then compare it to the cost of a single purchase of a year's supply.
Cost of 200 Steri-strips per month: 200 strips/month * $4.95/100 strips = $9.90
Cost of 200 Steri-strips for a year (12 months): $9.90/month * 12 months = $118.80
Now, let's calculate the cost of a year's supply with the discount:
Cost of 1,200 Steri-strips (a year's supply): 1,200 strips * $4.95/100 strips = $59.40
Discounted price with a 15% discount: $59.40 - (15/100 * $59.40) = $59.40 - $8.91 = $50.49
Finally, let's calculate the savings:
Savings = Cost of 12 monthly purchases - Cost of a year's supply with discount
Savings = $118.80 - $50.49 = $68.31
Therefore, by making a single purchase for a year's supply and taking advantage of the 15% discount, the orthopedic surgical group would save $68.31 in a year compared to 12 monthly purchases.
To calculate the annual savings by making a single purchase for a year's supply, we need to consider the cost of each Steri-strip, the quantity used per month, and any possible discounts.
1. Calculate the monthly cost:
The cost of a box of Steri-strips is $4.95, and there are 100 strips per box.
So, the cost per strip is $4.95 divided by 100, which equals $0.0495.
2. Calculate the monthly cost for 200 Steri-strips:
To calculate the monthly cost, multiply the cost per strip by the quantity used per month:
$0.0495 x 200 = $9.90
3. Calculate the cost for 12 monthly purchases:
Multiply the monthly cost by 12:
$9.90 x 12 = $118.80
4. Calculate the cost for a year's supply with a 15% discount:
Since the manufacturer offers a discount of 15% for large lots of 1,000 or more, we need to find out how many strips are needed for a year's supply.
In this case, 200 strips are used per month, so for a year's supply, we need:
200 x 12 = 2400 strips
The manufacturer's discount is 15%, so the price per strip with the discount is:
$0.0495 - (15% of $0.0495) = $0.0495 - ($0.0495 x 0.15) = $0.0495 - $0.007425 = $0.042075
5. Calculate the cost for a year's supply with the discount:
Multiply the price per strip with the discount by the number of strips needed:
$0.042075 x 2400 = $100.98
6. Calculate the annual savings:
To calculate the annual savings, subtract the cost of a year's supply with a discount from the cost of 12 monthly purchases:
$118.80 - $100.98 = $17.82
Therefore, the annual savings by making a single purchase for a year's supply instead of 12 monthly purchases would be $17.82.