JAMB Commerce 1999 Question 15

Question 15

Purchase and Sale of Goods

Kabir receives two quotations. Ade quotes ₦100 less 20% trade discount and 20% cash discount, while Benson quotes ₦100 less 30% trade discount and 10% cash discount. If Kabir wants to take advantage of trade and cash discount, then

  1. A.the materials should be supplied by Ade
  2. B.the materials should be supplied by both of them
  3. C.the materials should be supplied by Benson
  4. D.Benson should be asked to reduce his trade discount.
Show the answer and explanation

Answer: C (the materials should be supplied by Benson)

Explanation

Ade: 100 − 20% = 80, less 20% = ₦64. Benson: 100 − 30% = 70, less 10% = ₦63. Benson is cheaper.