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 they use 200 strips a month 4.95x2= 9.90/month for 12 months that's 59.40. 4.95x12=118.80 They would save 59.40. Is this correct?
No. The price is the same whether ordered by month or by year. The only way you are saving $59.40 is by shorting the surgical group by 100 strips per month.
To calculate the potential savings by making a single purchase for a year's supply, we need to compare the total cost of 12 monthly purchases with the cost of a year's supply.
Step 1: Calculate the cost of 12 monthly purchases:
Since the orthopedic surgical group uses 200 Steri-strips per month, the cost of 12 monthly purchases would be:
$4.95 x 200 x 12 = $11,880.
Step 2: Calculate the cost of a year's supply:
The cost of a year's supply is equal to the cost per box multiplied by the number of boxes needed for a year:
$4.95 x (200 strips / box) = $990.
Step 3: Calculate the potential savings:
To determine the savings, subtract the cost of a year's supply from the cost of 12 monthly purchases:
$11,880 - $990 = $10,890.
Therefore, by making a single purchase for a year's supply, the orthopedic surgical group would potentially save $10,890 in a year, not $59.40 as mentioned in your statement.