The deans' suite hoped to cut costs and decided to perform a total cost analysis on its vodka supplier. Consumption was currently 6,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $9.25 per bottle and packed 500 bottles in a crate. The cost to ship the crate was $5. Another potential source of vodkas was Pancho's, who charged $9.20 per bottle but could ship only 100 bottles in a crate. Assume that a partial crate may be purchased. At what annual shipping price per crate from Pancho's would the college face equal total costs?

• $ 6.50
• $ 7.00
• $ 6.00
• $ 5.50

Answer rating: 100% (QA)

600 Explanation Total demand per semester 6000 bottles Hence demand per annum 12000 bo... View the full answer