A specific model of computer servers are being sold by Company A for $26,500 each, offering trade discounts of 7% and 6%, and by Company B for $35,500 each, offering trade discount rates of 12% and 2%.

a. Which company is offering the servers for a cheaper price?

b. What further trade discount rate must the company with the higher price provide to match the lower price?

AppendixLO1