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3 January, 15:25

Home Depot wants to buy a new line of fertilizers. Manufacturer A offers a 21/13 chain discount. Manufacturer B offers a 26/8 chain discount. Both manufacturers have the same list price. What manufacturer should Home Depot buy from, show why?

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  1. 3 January, 16:05
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    Home Depot wants to buy a new line of fertilizers. Manufacturer A offers a 21/13 chain discount. Manufacturer B offers a 26/8 chain discount

    Chain discount (a/b) means a% discount in original price plus b% discount in discounted price

    Manufacturer A offers a 21/13 chain discount

    Lets 100 be the original price

    21% discount on original price, so discounted price = 100 - 21 = 79

    13% discount on discounted price,

    so final price = 79 - (79*0.13) = $68.73

    Manufacturer B offers a 26/8 chain discount

    Lets 100 be the original price

    26% discount on original price, so discounted price = 100 - 26 = 74

    8% discount on discounted price,

    so final price = 79 - (79*0.13) = $68.08

    The final price of Manufacturer B is less than Manufacturer A,

    so Home Depot should buy from Manufacturer B
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