Question 549549


Which deal is favorable to the Seller?

Buy 10 units and get 4 units Free? or Straight 40% cash discount on gross sales? and Why? 


14 units cost 14 * $113, or $1,582
Selling 10 units at $360 per unit nets the seller $3,600, with 4 offered free
This means that the seller makes a profit of $3,600 – 1,582, or $2,018


14 units cost 14 * $113, or $1,582
Selling 14 units at $360 per unit = $5,040, but with a 40% discount ($2,016), the seller nets $5,040 – 2,016, or $3,024
This means that the seller makes a profit of $3,024 – 1,582, or $1,442


Selling 10 units and giving away 4 units is more favorable to the seller as he/she will net $2,018 – 1,442, or $576 more.


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