A retailer is considering the purchase of one hundred units of a specific item from either of

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A retailer is considering the purchase of one hundred units of a specific item from either of two suppliers. Their offers are as follows:

A: $400 a unit, total of $40,000, 2/10, n/30, plus transportation costs of $625.

B: $403 a unit, total of $40,300, 1/10, n/30, no charge for transportation.

Which of the two offers, A or B, yields the lower price?


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Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

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