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E4-17: Purchase-related transactions A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as

E4-17: Purchase-related transactions

A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A: $390 a unit, total of $39,000, 1/10, n/30, plus freight of $750. B: $400 a unit, total of $40,000, 2/10, n/30, no charge for freight. Which of the two offers, A or B, yields the lower price?

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