The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler.  The manufacturer will not ship orders for less than $1,200 total list price.  Delivery typically requires five weeks, and freight averages 2.5% of total billed cost.  Trade discounts on the merchandise are 40% and 10%; terms are 2/10, n/30. A wholesaler located in the retailer's area stocks many of the same stuffed animals.  he does not require a minimum order and will deliver at no charge in the area if the order has a total billed cost of at least $500.  The manufacturer and wholesaler base cost on the same list price; however the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15, n/30. What is the difference in the total net cost (including freight) of merchandise with a total list price of $1,200 from these two vendors?

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Chapter1: Financial Statements And Business Decisions
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14. The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler.  The manufacturer will not ship orders for less than $1,200 total list price.  Delivery typically requires five weeks, and freight averages 2.5% of total billed cost.  Trade discounts on the merchandise are 40% and 10%; terms are 2/10, n/30.

A wholesaler located in the retailer's area stocks many of the same stuffed animals.  he does not require a minimum order and will deliver at no charge in the area if the order has a total billed cost of at least $500.  The manufacturer and wholesaler base cost on the same list price; however the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15, n/30.

What is the difference in the total net cost (including freight) of merchandise with a total list price of $1,200 from these two vendors?

(Present your answer with a comma separator, dollar-sign, and rounded to the penny (i.e. $1,234.56).)

 

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