Question

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?

Answer 1

Supplier A is cheaper. This is because in calculation, the delivery of both suppliers are the same, there fore who has the cheapest price for a bushel is the best supplier.

Answer 2

Supplier A is cheaper than supplier B.

Explanation:

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.

When 500 bushels are bought from supplier A.

`(5.25*500)+(3*500)`

=>
`2625+1500=4125` dollars

When 500 bushels are bought from supplier B.

`(6.50*500)+1500`

=>
`3250+1500=4750` dollars

Therefore, Supplier A is cheaper than supplier B.