Question

you are working on a grant request and need to include funding for 5,000 envelopes. you receive bids from the 3 companies shown. how much should you include in your grant request for the envelopes if you choose the company with the lowest price?

company name	envelope cost
pinnacle supply	$27.85 per 1,000
speedy janes	$85.00 per 2,500

a. $123.09
b. $126.39
c. $135.40
d. $139.25
e. $170.00

Explanation:

Step1: Calculate cost from Aurora Office Supplies

Since it's $13.54$ per 500 envelopes, for 5000 envelopes, the number of 500 - envelope groups in 5000 is $\frac{5000}{500}=10$. The cost is $13.54\times10 = 135.40$ dollars.

Step2: Calculate cost from Pinnacle Supply

It's $27.85$ per 1000 envelopes. The number of 1000 - envelope groups in 5000 is $\frac{5000}{1000}=5$. The cost is $27.85\times5=139.25$ dollars.

Step3: Calculate cost from Speedy Jane's

It's $85.00$ per 2500 envelopes. The number of 2500 - envelope groups in 5000 is $\frac{5000}{2500}=2$. The cost is $85\times2 = 170$ dollars.

Step4: Compare costs

Comparing the costs: $135.40<139.25<170$. The lowest - cost company is Aurora Office Supplies.

Answer:

C. $135.40$