Final answer:
Edward's Electronics' cost per camera is $302, while Staples' cost per camera is $158.95. Edward's Electronics pays $170 per camera, while Staples pays $138.55 per camera after applying a cash discount of 3/20 and a quantity discount of 3.5%.
Step-by-step explanation:
Edward's Electronics' cost per camera will be determined by various factors including the cost of the camera, overhead costs, and desired profit. For Edward's, the cost of each camera is $170. To calculate the actual cost per camera, we need to consider the overhead and profit percentage on the manufacturer's suggested retail price (MSRP). The overhead is 15% of the MSRP ($400), which amounts to $60. The desired profit is 18% of the MSRP, which amounts to $72. Adding the cost of the camera, overhead, and desired profit, the total cost per camera for Edward's Electronics is $170 + $60 + $72 = $302.
Staples Canada, on the other hand, has negotiated both a cash discount and a quantity discount from the list price of $170. The cash discount is 3/20, n/45, which means a 3% discount if paid within 20 days, or the full amount due within 45 days. The quantity discount is 3.5% off the list price. To calculate the cost per camera for Staples, we need to deduct both discounts from the list price. The cash discount amounts to $5.10 ($170 x 3%), and the quantity discount amounts to $5.95 ($170 x 3.5%). Subtracting these discounts from the list price, the cost per camera for Staples is $170 - $5.10 - $5.95 = $158.95.
Edward's Electronics pays $170 per camera, while Staples pays $138.55 per camera after applying a cash discount of 3/20 and a quantity discount of 3.5%.
The cost per camera for Edward's Electronics is easy to calculate since there are no discounts involved. The cost is simply the price given by the supplier, which is $170. In contrast, Staples receives both a cash discount and a quantity discount. The cash discount is 3/20 of the $170, which calculates to $25.50, reducing the price to $144.50. The quantity discount is an additional 3.5% off of the $170, which is $5.95, reducing the consequently discounted price to $138.55 per camera.