Question

A retailer has two options for series of trade discounts:
1: If retailer can purchase 30 total items, the retailer receives a 20% discount on the entire purchase. If retailer can purchase even more (say 50 items), retailer will receive an additional 30% discount on the previously discounted price.

2: If retailer can purchase 30 total items, retailer will receive a 30% discount on the entire purchase. If retailer can purchase even more (say 50 items), retailer will receive an additional 20% discount on the previously discounted price.

Which is better deal?

Answer 1

Wouldn't they both be the same since no net price is given?

Answer 2

1. lets just say the items are $2 each....purchasing 30 of them would be $60 with a discount of 20% which is (.20)(60) = 12.....60 - 12 = $48 would be the cost
That means he can get 30 items for $48.

50 items at $2 each = $100. And an additional 30% discount added to the 20% discount = 50% discount. 50% discount off of 100 = $50
That means he can purchase 50 items for $50.

So would you rather get 30 items for $48..or spend $2 more and get 20 more items ?

2. 30 items at $2 each with 20% discount = $48.

50 items at $2 each = $100. 20% discount + another 20% = 40% off.
(.40)(100) = 40. $100 - $40 = $60. So he purchased 50 items for $60.

So we have 30 items for $48....
30/48 = 50/x (30 items for $48 = 50 items for x bucks)
30x = (48)(50)
30x = 2400
x = 80
at this rate, purchasing 50 items would cost $80

or...
50 items for $60.

which one would you choose ?