Question

A food production company is choosing between two suppliers of grain. Supplier A sells grain for $5.25 per bushel plus a delivery fee of $3 per bushel. Supplier B sells the grain for $6.50 per bushel plus a flat delivery fee of $1,500 each week. Which supplier would cost more if the production company bought 500 bushels of grain each week?
Supplier B would cost $625 more than supplier A.
Supplier B would cost $600 more than supplier A
Supplier A would cost $875 more than supplier B.
Supplier A would cost $800 more than supplier B.

Answer 1

Supplier A: (5.25 + 3.00) × 500 = 8.25 × 500 = $4,125
Supplier B: 6.50 × 500 + 1,500 = 3,250 + 1,500 = $4,750

Difference: 4,750 − 4,125 = $625

So Supplier B would cost $625 more than Supplier A.