Jennie\'s variety store has the opportunity to purchase candy from three differe
ID: 3143776 • Letter: J
Question
Jennie's variety store has the opportunity to purchase candy from three different wholesalers; each of the wholesalers offers a different chain discount. Company A offers 25/5/5, Company B offers 20/10/5, and company C offers 15/20. Which company should Jennie deal with? Hint: Choose the company with the highest single equivalent discount rate Jennie's variety store has the opportunity to purchase candy from three different wholesalers; each of the wholesalers offers a different chain discount. Company A offers 25/5/5, Company B offers 20/10/5, and company C offers 15/20. Which company should Jennie deal with? Hint: Choose the company with the highest single equivalent discount rate Choose the company with the highest single equivalent discount rateExplanation / Answer
Company A offers 25/5/5,
Company B offers 20/10/5,
Company C offers 15/20.
chain discount formules is= (1-discount 1) *(1-discount2)*(1-discount3)...
for company A = (1-25%)*(1-5%)(1-5%)
= (0.75)(0.95)(0.95)
= 0.6768
for company B = (1-discount 1) *(1-discount2)*(1-discount 3)
= (1-20%)(1-10%)(1-5%)
= 0.80*0.90*0.95
= 0.684
for company C = (1-discount 1) *(1-discount2)
=( 1-15%)*(1-20%)
= (0.85*0.80)
=0.68
from these above caluclations we have 0.684 which company B has higher discount rate
so answer is option comapany B
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