The Artist's Palette sells high-end art supplies to the art students at three regional art and design schools in Philadelphia, Washington, D.C., and Baltimore. It carries paints, brushes, drawing pads, frames, charcoal, pastels, and other supplies used in a variety of artistic media. Because its clientele is very discriminating, The Artist's Palette tends to carry only the top lines in its inventory and it is known for having the best selection on hand. It is rare that an item is out of stock. Artists can visit the store, purchase from The Artist's Palette catalog, or from the secure web site.
The Artist's Palette purchases its inventory from a number of suppliers and each supplier offers different purchasing discounts. The manager of The Artist's Palette, Marty Parma, is currently comparing two offers for purchasing modeling clay and supplies. The first company offers a chain discount of 20/10/5, and the second company offers a chain discount of 18/12/7 as long as the total purchases are $300 or more. Assuming Parma purchases $300 worth of supplies, what is the net price from supplier
1? From supplier 2? From which supplier would you recommend Parma purchase her modeling clay and supplies?
2. What is the net decimal equivalent for supplier 1? For supplier 2?
3. What is the trade discount from supplier 1? From supplier 2?