does anybody know how to get the answer to trade discounts?
always_smiling98 asked:
Bobs radio shop wants to buy a line of new shortwave radios. Manufacturer A offers chain discounts of 19/10, while manufacturer b offer discounts 18/11. Assume both manufacturers have the same list price. Which manufacturer should Bob buy from?
Bobs radio shop wants to buy a line of new shortwave radios. Manufacturer A offers chain discounts of 19/10, while manufacturer b offer discounts 18/11. Assume both manufacturers have the same list price. Which manufacturer should Bob buy from?
If cash flow permits, 19/10, most discount.
Consider one percent every ten days, assuming a purchase is made regularly in that time period.
That works out to 36.5 payments per year, again assuming a purchase every ten days. At 1%=36.5% discounts.
18/11 loses that much, for an extra day to pay. Not good economics.