Question 15
Purchase and Sale of GoodsKabir 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
- A.the materials should be supplied by Ade
- B.the materials should be supplied by both of them
- C.the materials should be supplied by Benson
- 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.