The restaurant should choose Warner as the vendor for paper towels because they are the cheaper vendor for 15 cases of paper towels.
A restaurant needs to stock paper towels in its kitchen and bathrooms. It has found two vendors using the following case price chart.
Vendor Cases Restaurant Warehouse Supply Side
Warner 5 $300.20 $220.20
Spencer 5 $315.30 $245.30
Warner 10 $480.15 $420.15
Spencer 10 $500.20 $440.20
Warner 15 $660.10 $620.10
Spencer 15 $685.15 $645.15
To determine which vendor is cheaper, we can compare the prices for the same number of cases. For example, if the restaurant needs 5 cases of paper towels, Warner is the cheaper vendor because they charge $300.20 while Spencer charges $315.30.
However, if the restaurant needs more than 5 cases of paper towels, Spencer becomes the cheaper vendor. For example, if the restaurant needs 10 cases of paper towels, Spencer charges $500.20 while Warner charges $480.15.
To determine which vendor is the cheapest for a specific number of cases, we can use the following formula:
Total price = (Number of cases) * (Price per case)
For example, if the restaurant needs 15 cases of paper towels, we can calculate the total price for each vendor as follows:
Warner:
Total price = (15 cases) * ($660.10 per case) = $9,901.50
Spencer:
Total price = (15 cases) * ($685.15 per case) = $10,277.25
Therefore, Warner is the cheaper vendor for 15 cases of paper towels.