Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?a)$388.00, $400.42b)$357.00, $400.42c)$369.64, $401.50d)$369.64, $400.42e)$369.64, $414.00Correct answer is option 'D'. Can you explain this answer?

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Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?

a)
$388.00, $400.42
b)
$357.00, $400.42
c)
$369.64, $401.50
d)
$369.64, $400.42
e)
$369.64, $414.00

Correct answer is option 'D'. Can you explain this answer?

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Chris has the option to order parts from either of two suppliers. Supp...

(A) Smallest value of an order from Supplier A for which Supplier B would be cheaper

All values are in the range excess of $350; so, the shipping cost (Supplier B) will be $12.50

Smallest value of an order from Supplier A for which Supplier B would be cheaper;

implies
3.5 % excess value (in case of Supplier A) = Shipping charge (Supplier )

ie, 3.5 % of item price = $12.50

Item price = $12.50 / 0.0350
= $357.14

Hence, Order value = $357.14 + 12.50
= $369.64

(B) Supplier B’s charge for a $401.50 order from Supplier A

If Supplier A charges $401.50 for the order ; then

Item price = $401.50 / 1.0350 (since, the order cost will be 3.5% excess for Supplier A)
= $387.92

Hence,
Order Cost for Supplier B = $387.92 + $12.50 (ie, Shipping charge)
= $400.42

Answered by Talent Skill Learning · View profile

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Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?a)$388.00, $400.42b)$357.00, $400.42c)$369.64, $401.50d)$369.64, $400.42e)$369.64, $414.00Correct answer is option 'D'. Can you explain this answer?

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Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?a)$388.00, $400.42b)$357.00, $400.42c)$369.64, $401.50d)$369.64, $400.42e)$369.64, $414.00Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?a)$388.00, $400.42b)$357.00, $400.42c)$369.64, $401.50d)$369.64, $400.42e)$369.64, $414.00Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?a)$388.00, $400.42b)$357.00, $400.42c)$369.64, $401.50d)$369.64, $400.42e)$369.64, $414.00Correct answer is option 'D'. Can you explain this answer?.

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