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Purchasing Manager

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AVG. SALARY

$129,380

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EDUCATION

Bachelor's degree or higher +

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JOB OUTLOOK

Stable

Real-Life Activities

Real-Life Math -- Solution

You know that you need 15 lab stools.

Supplier A can sell them to you for $270 each.

It doesn't matter what he charges for 10 or 20 stools, because you know you need 15.

Supplier B says he will sell you 50 stools for $13,000.

Then you must add the storage fee:

$100 per month x 12 months = $1,200

Now add these 2 together to find the total cost of 50 lab stools:

$13,000 + $1,200 = $14,200

To compare the costs of the stools, divide $14,200 by 50.

Each stool from supplier B will cost $284.

It would be better to go with supplier A, who is only charging $270 per stool.