A food production company is choosing between two suppliers of grain. Supplier A sells grain for $5.25 per bushel plus a delivery fee of $3 per bushel. Supplier B sells the grain for $6.50 per bushel plus a flat delivery fee of $1,500 each week. Which supplier would cost more if the production company bought 500 bushels of grain each week?

Supplier A.
Supplier A sells each bushel for $8.25 including the shipping fee. 8.25 times 500 is $4,125.
Supplier B sells each bushel for $6.50, 6.50 times 500 is $3250. But when putting the delivery fee of $1,500, it raises the price to $4,750, which is greater than the price of supplier A.

Answer Link

Palky Palky · Answer 2 · 2022-01-04T16:24:58+01:00

Supplier 2 cost is more compared to supplier 1 , for 500 bushels per week.

Supplier 1 Total Cost : 5.25 & 3 delivery per bushel , for 500 bushels

= ( 5.25 + 3 ) x 500

= 500 x 8.25 = 4125

Supplier 2 Total Cost : 6.50 per bushel for 500 bushels, & 1500 flat delivery weekly

= ( 6.50 x 500 ) + 1500

= 3250 + 1500 = 4750

Supplier 2 Total Cost 4750 > Supplier 1 Total Cost 4125

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