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A retailer is considering the purchase of 100 units of a

1. A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows:

A: $200 a unit, total of $20,000, 2/10, n/30, no charge for freight.

B: $195 a unit, total of $19,500, 1/10, n/30, plus freight of $400.

Which of the two offers, A or B, yields the lower price?

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Accounting Basics: A retailer is considering the purchase of 100 units of a

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