A food production company is choosing between two suppliers of grain. Supplier A sells grain for $5.25 per bushel plus a delivery fee of $3 per bushel. Supplier B sells the grain for $6.50 per bushel plus a flat delivery fee of $1,500 each week. Which supplier would cost more if the production company bought 500 bushels of grain each week?
Supplier A is cheaper. This is because in calculation, the delivery of both suppliers are the same, there fore who has the cheapest price for a bushel is the best supplier.
Answer:
Supplier A is cheaper than supplier B.
Step-by-step explanation:
Supplier A sells grain for $5.25 per bushel plus a delivery fee of $3 per bushel.
Supplier B sells the grain for $6.50 per bushel plus a flat delivery fee of $1,500 each week.
When 500 bushels are bought from supplier A.
\((5.25\times500)+(3\times500)\)
=> \(2625+1500=4125\) dollars
When 500 bushels are bought from supplier B.
\((6.50\times500)+1500\)
=> \(3250+1500=4750\) dollars
Therefore, Supplier A is cheaper than supplier B.