To: Dwayne Simpson

Question

From: Thomas Johnson
Re: Car Parts Foundry price quote

Dear Mr. Simpson,

Thank you for your inquiry regarding the cost of producing the valve bodies, valve bonnets, and pistons you require.

In order to quote the exact cost of these pieces, I will need to have accurate renderings of them. The designers in our shop need these to determine the size and location of the risers for each casting. Our QAD team would be happy to run the standard stress and endurance tests on the finished pieces at no extra charge. The riser is an extra section of the pattern that keeps pressure on the molten metal and prevents air bubbles from forming in the metal at the time of its pouring. Therefore, the design and placement of the riser plays an essential role in determining the strength and safety of the finished piece. The excess metal is later removed from the casting in the grinding-and-cleaning process.

As soon as I receive the renderings from you, I will contact you to discuss the total cost of your order. Substantial discounts apply to orders of one thousand pieces or more for our premium product lines, such as our TUFF-STUFF product line. However, these discounts only apply to our mid-market lines, such as Valve Components products, at orders of two thousand or more pieces. We have a wide variety of other car parts and casings, as well.

Thank you for your interest in our company.

Question
You are interested in ordering more parts from Car Parts Foundry. Which of the following orders would result in a substantial discount?

A.500 pieces of a premium product
B.1,000 pieces of a mid-market product
C.1,500 pieces of a premium product
D.1,500 pieces of a mid-market product
E.1,750 pieces of a mid-market product

Answer 1

Based on the information provided in the quote from Thomas Johnson, substantial discounts apply to:

• Orders of 1,000 pieces or more for premium product lines.
• Orders of 2,000 pieces or more for mid-market lines.

Given these criteria, let's evaluate the options:

A. 500 pieces of a premium product - No discount, as it is below 1,000 pieces. B. 1,000 pieces of a mid-market product - No discount, as it does not meet the 2,000 pieces minimum. C. 1,500 pieces of a premium product - Discount applies, as it meets the 1,000 pieces minimum. D. 1,500 pieces of a mid-market product - No discount, as it does not meet the 2,000 pieces minimum. E. 1,750 pieces of a mid-market product - No discount, as it does not meet the 2,000 pieces minimum.

The correct answer is C. 1,500 pieces of a premium product, as this order would result in a substantial discount.