Complete the Quantity Discount Analysis problems below. You must show your work to receive full credit.

QUANTITY DISCOUNT ANALYSIS

Problem 1:

Jenny Tesh has received the following quote from a supplier of replacement toner cartridges used in the office copiers:

Quantity Unit Price

1 $23

2 19

5 17

10 13

13 12

Assignment Questions

1. Using the format illustrated in the textbook, calculate a quantity discount analysis for a quote using specific quantities.
2. What quantity should Jenny order if she wants to receive the lowest incremental costs between quantities?
3. Is there anything unusual about this quote?
4. What must a buyer consider when determining what quantity to purchase?

Problem 2:

That same day Jenny received a quote for printing services for a human resources manual. The supplier has quoted a discount schedule using ranges instead of specific quantities.

Quantity Unit

Range Price

15 $9.00

610 8.85

1120 8.75

2130 8.00

3140 7.60

4150 7.30

5199 7.00

Assignment Questions

1. Using the format illustrated in the textbook, calculate a quantity discount analysis for a quote specifying quantity ranges.
2. What do you conclude about this quotation? Does it appear reasonable based on your analysis? Why or why not?
3. What should Jenny do with regards to this quote and supplier?