Quantity Discount Analysis Assignment Answers
QUANTITY DISCOUNT ANALYSIS
Minnie Wong has received the following quote from a supplier of replacement ink cartridges used in laser jet printers:
Quantity Unit Price
- Using the format illustrated in the textbook, calculate a quantity discount analysis for a quote using specific quantities.
- What quantity should Minnie order if she wants to receive the lowest incremental costs between quantities?
- Is there anything unusual about this quote?
- What must a buyer consider when determining what quantity to purchase?
That same day Minnie received a quote for printing services for a purchasing procedures manual. The supplier has quoted a discount schedule using ranges instead of specific quantities.
- Using the format illustrated in the textbook, calculate a quantity discount analysis for a quote specifying quantity ranges.
- What do you conclude about this quotation? Does it appear reasonable based on your analysis? Why or why not?
- What should Minnie do with regards to this quote and supplier?
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