The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from...

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The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,500 total list price. Delivery typically requires five weeks, and freight averages 1.75% of total billed cost. Trade discounts on this merchandise are 30% and 15%; terms are 3/10, n/30. (Hint: add the freight at the last stage) A wholesaler, located in the retailer's area, stocks many of the same stuffed animals. He does not require a minimum order and will deliver at no charge in the area if the order has a billed cost of at least $1,000. The manufacturer and wholesaler base cost on the same list price; however, the wholesaler sells with trade discounts of 40% and 5% and terms of 2/15, n/30. What is the difference in the total net cost (including freight) of merchandise with a total list price of $2,750 from these two vendors? (Be sure to take the cash discount.) The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,500 total list price. Delivery typically requires five weeks, and freight averages 1.75% of total billed cost. Trade discounts on this merchandise are 30% and 15%; terms are 3/10, n/30. (Hint: add the freight at the last stage) A wholesaler, located in the retailer's area, stocks many of the same stuffed animals. He does not require a minimum order and will deliver at no charge in the area if the order has a billed cost of at least $1,000. The manufacturer and wholesaler base cost on the same list price; however, the wholesaler sells with trade discounts of 40% and 5% and terms of 2/15, n/30. What is the difference in the total net cost (including freight) of merchandise with a total list price of $2,750 from these two vendors? (Be sure to take the cash discount.)

Answer rating: 100% (QA)

To find the total net cost from the manufacturer we first need to calculate the trade discount The t... View the full answer