Reference no: EM131083097
Massile orders 1,500 bricks and 13 bags of cement for a house extension.
Supplier A charges £99 for a pack of 500 bricks, £4.50 for each bag of cement, and will add their minimum delivery charge of £20.
Supplier B charges £105 for each pack of 500 bricks, and £4.25 for each bag of cement, and offers free delivery.
(a) Calculate the total cost of the order in each case. Jenny orders the bricks and cement from the cheaper supplier.
(b) How much, if anything, would Jenny save by buying bricks from one supplier and cement from the other?
At the end of the month, supplier C sends Jenny a statement of account showing that she owes £245.50, and offers to reduce this by 2% for prompt payment.
(c) Calculate the amount Jenny pays if she pays promptly.
Once the extension is complete, Jenny increases the value that her house is insured for. The new insured value is £190,000.
The insurer charges £21 per annum to insure each £10,000 of the amount insured, plus a set amount of £45 for contents.
(d) Calculate the new annual cost to Jenny of insuring her house and contents.