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Quantity Discount Analysis Exercise Topic Specific Assignment #4 (worth 5%) Aleda has received the following quote from a supplier of replacement ink cartridges used in laser jet printers: Quantity Unit Price 1 $69.00 2 $57.00 5 $51.00 10 $39.00 13 $36.00 Assignment: 1. Using the format illustrated in Chapter 12 of our text, calculate a quantity discount analysis for a quote using specific quantities. 2. What quantity should Aleda order if she wants to receive the lowest incremental costs between quantities quoted? 3. Is there anything unusual about this quote? Please explain with examples. 4. What must a buyer consider when determining what quantity to purchase? 1S HOW TO calculate Quantity Discou CALCULATION OF A QUANTITY DISCOUNT ANALYSIS Number of units/order 1 3 6 10 Price/unit (quoted) 0 $85.00 $80.00 $70.00 $69.00 $85.00 $240.00 $420.00 $690.00 Total price/order 0 Price difference between orders Quantity difference/order Price/unit/order quantity difference -21S HOW TO calculate Quantity Discour QUANTITY DISCOUNT Number of units/ord ANALYSIS: 6 10 Price/unit (quoted) 0 $85.00 $80.00 $70.00 $69.00 Total price/order 0 $85.00 $240.00 $420.00 $690.00 Price difference between orders 85-0=85 240-85= 420-240= 690-420= 155 180 270 Quantity difference/order 1-0=1 3-1=2 6-3=3 10-6=4 Price/unit/order quantity difference 270/4= $67.5 155/2= $77.5 85/1= $85 180/3= $60