Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

Exercise 86

You are the purchasing manager for Tiger Electronics, a company that manufactures scanners and other computer peripherals. Your vendor for scanner motors, Enfield Industries, is now offering "quantity discounts" in the form of instant rebates and lower shipping charges as follows:

a. Calculate the cost of the motors, including shipping charges, for each category.
b. If you usually purchase 400 motors per month, what percent would be saved per motor by ordering 800 every two months? Round to the nearest tenth of a percent.
c. What percent would be saved per motor by ordering 1,200 every three months? Round to the nearest tenth of a percent.
d. How much money can be saved in a year by purchasing the motors every three months instead of every month?
e. (Optional) What other factors besides price should be considered before changing your purchasing procedures?