Question

A specific model of computer servers are being sold by company a for $26,700 each, offering trade discounts of 7% and 5% and by company b for $35,900 each, offering trade discount rates of 13% and 2%.

which company offers the servers for a cheaper price?

A. a
B. b

Answer 1

To determine which company offers the servers for a cheaper price, calculate the final price after applying the trade discounts for each company. Company A offers the servers for a cheaper price compared to company B. Option number a is correct.

Step-by-step explanation:

To determine which company offers the servers for a cheaper price, we need to calculate the final price after applying the trade discounts for each company.

For company A, the trade discounts are 7% and 5%. So the final price after applying the discounts is:

1. Initial price: $26,700
2. Trade discount 1: 26,700 * 0.07 = $1,869
3. Price after trade discount 1: 26,700 - 1,869 = $24,831
4. Trade discount 2: 24,831 * 0.05 = $1,242
5. Final price after trade discounts: 24,831 - 1,242 = $23,589

For company B, the trade discounts are 13% and 2%. So the final price after applying the discounts is:

1. Initial price: $35,900
2. Trade discount 1: 35,900 * 0.13 = $4,667
3. Price after trade discount 1: 35,900 - 4,667 = $31,233
4. Trade discount 2: 31,233 * 0.02 = $625
5. Final price after trade discounts: 31,233 - 625 = $30,608

Comparing the final prices, we can see that company A offers the servers for a cheaper price at $23,589 compared to company B's price of $30,608. Therefore, company A offers the servers for a cheaper price.