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ILLUSTRATION 11 When tenders were invited for a store, quotations were received as under: Supplier A . (a)Rate $2 each ; (b) Trade discount 10%

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ILLUSTRATION 11 When tenders were invited for a store, quotations were received as under: Supplier A . (a)Rate $2 each ; (b) Trade discount 10% ; (c) Cash discount 5% if bills are paid within a fortnight after receipt; (d) Transport charges $1 per 100 units. Supplier B . (a)Rate $1.80 each (upto 1,000 units), 1.60 each (for orders above 1,000 units); (b) 6% interest per annum will be added if bills are not paid within a fortnight after receipt of the materials; (c) Transport charges $3 per 100 units. . Assuming about 5,000 units are required every month and that quality and other conditions of supply are the same, offer your comments as to whom purchase order can be issued. The factory pays 50% of its total monthly bills every fortnight

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