## Quantity Discount Analysis Assignment Answers

### QUANTITY DISCOUNT ANALYSIS

Minnie Wong has received the following quote from a supplier of replacement ink cartridges used in laser jet printers:

Quantity         Unit Price

1                      \$23

2                      19

5                      17

10                    13

13                    12

### Assignment Questions

1. Using the format illustrated in the textbook, calculate a quantity discount analysis for a quote using specific quantities.
2. What quantity should Minnie order if she wants to receive the lowest incremental costs between quantities?
4. What must a buyer consider when determining what quantity to purchase?

That same day Minnie received a quote for printing services for a purchasing procedures manual. The supplier has quoted a discount schedule using ranges instead of specific quantities.

Quantity         Unit
Range             Price

1–5                  \$9.00

6–10                8.85

11–20              8.75

21–30              8.00

31–40              7.60

41–50              7.30

51–99  7.00

### Assignment Questions

1. Using the format illustrated in the textbook, calculate a quantity discount analysis for a quote specifying quantity ranges.