All-American Sports can purchase sneakers for $450 per dozen less trade discounts of 14/12
from Ideal Shoes. Fancy Footwear is offering the same sneakers for $435 less trade discounts
of 18/6. Which supplier offers a lower net price?
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did you ever get your answer
To determine which supplier offers a lower net price, we need to calculate the net price for each supplier after taking into account the trade discounts.
Let's start with All-American Sports:
- Purchase price per dozen: $450
- Trade discount: 14/12
To calculate the trade discount, we divide the numerator (14) by the denominator (12), which gives us 1.1667. Then, we multiply this by the purchase price per dozen:
1.1667 * $450 = $524.97
So, the net price for All-American Sports after the trade discount is $524.97.
Now, let's calculate the net price for Fancy Footwear:
- Purchase price per dozen: $435
- Trade discount: 18/6
Similarly, we divide the numerator (18) by the denominator (6) to get 3. Then, we multiply this by the purchase price per dozen:
3 * $435 = $1,305
So, the net price for Fancy Footwear after the trade discount is $1,305.
Comparing the two net prices, we can see that All-American Sports offers a lower net price of $524.97 compared to Fancy Footwear's net price of $1,305. Therefore, All-American Sports is the supplier who offers a lower net price.