A while ago, Spz Ltd, a British firm, introduced two new European kitchen wall unit designs. These units are known for their high quality and attractive appearance. Several companies from various European countries have expressed interest in purchasing these furniture pieces from Great Britain and have already made orders. The managers of a Russian company, which is involved in the trade of such goods, came across an article about Spz in a business journal. They wished to obtain the most recent catalog and price list from the company and received it via email. Subsequently, they sent an inquiry via fax regarding the purchase of 100 units of kitchen furniture.
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a request to Spz for a special quantity of the new kitchen wall units. In response, Spz confirmed that they can fulfill the order with the requested quantity. However, they also informed the Russian company that due to the high demand and limited production capacity, the delivery time would be longer than usual.
The Russian company wants to calculate the total cost of their order, taking into account the discount mentioned in the catalog and the additional shipping costs. The cost of each kitchen wall unit is £500, and the company wants to order 50 units. The catalog mentions a discount of 10% for orders over £10,000. The shipping costs are estimated to be £500 per unit.
To calculate the total cost, we need to consider several factors:
1. Subtotal cost before discount: The subtotal cost is calculated by multiplying the cost per unit (£500) by the number of units (50): \(subtotal = 500 \times 50 = £25000\).
2. Discount: Since the order value exceeds £10,000, the Russian company is eligible for a 10% discount. The discount amount can be calculated by multiplying the subtotal by the discount percentage: \(discount = 0.1 \times subtotal = 0.1 \times £25000 = £2500\).
3. Total cost after discount: The total cost after discount is obtained by subtracting the discount amount from the subtotal: \(total\_cost = subtotal - discount = £25000 - £2500 = £22500\).
4. Shipping costs: The shipping costs are estimated to be £500 per unit. Since the Russian company ordered 50 units, the total shipping costs can be calculated by multiplying the shipping cost per unit by the number of units: \(shipping\_costs = 500 \times 50 = £25000\).
5. Final total cost: To calculate the final total cost, we need to add the total cost after discount to the shipping costs: \(final\_total\_cost = total\_cost + shipping\_costs = £22500 + £25000 = £47500\).
Therefore, the final total cost for the Russian company"s order of 50 kitchen wall units, including the discount and shipping costs, is £47,500.
The Russian company wants to calculate the total cost of their order, taking into account the discount mentioned in the catalog and the additional shipping costs. The cost of each kitchen wall unit is £500, and the company wants to order 50 units. The catalog mentions a discount of 10% for orders over £10,000. The shipping costs are estimated to be £500 per unit.
To calculate the total cost, we need to consider several factors:
1. Subtotal cost before discount: The subtotal cost is calculated by multiplying the cost per unit (£500) by the number of units (50): \(subtotal = 500 \times 50 = £25000\).
2. Discount: Since the order value exceeds £10,000, the Russian company is eligible for a 10% discount. The discount amount can be calculated by multiplying the subtotal by the discount percentage: \(discount = 0.1 \times subtotal = 0.1 \times £25000 = £2500\).
3. Total cost after discount: The total cost after discount is obtained by subtracting the discount amount from the subtotal: \(total\_cost = subtotal - discount = £25000 - £2500 = £22500\).
4. Shipping costs: The shipping costs are estimated to be £500 per unit. Since the Russian company ordered 50 units, the total shipping costs can be calculated by multiplying the shipping cost per unit by the number of units: \(shipping\_costs = 500 \times 50 = £25000\).
5. Final total cost: To calculate the final total cost, we need to add the total cost after discount to the shipping costs: \(final\_total\_cost = total\_cost + shipping\_costs = £22500 + £25000 = £47500\).
Therefore, the final total cost for the Russian company"s order of 50 kitchen wall units, including the discount and shipping costs, is £47,500.
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