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A company uses 200 L of a liquid per week. The liquid can be bought in 1 L tins for 200 per tin or 10 L tins for 40 per tin. How much can be saved annually by buying in bulk?

Mathematics

ScanSolve AI Answer

Step-by-step solution

4 steps
  1. Calculate the cost per liter for each option.

    For the smaller quantity: \text{Cost per liter (Option 1)} = \frac{$200}{200 \text{ L}} = $1/\text{L} For the larger quantity (bigger tins): \text{Cost per liter (Option 2)} = \frac{$40}{400 \text{ L}} = $0.10/\text{L}

  2. Calculate the total amount of liquid used in a year.

    There are 52 weeks in a year.

    Annual usage=200 L/week×52 weeks/year=10400 L/year\text{Annual usage} = 200 \text{ L/week} \times 52 \text{ weeks/year} = 10400 \text{ L/year}
  3. Calculate the total annual cost for each option.

    Cost if using Option 1 (smaller quantity): \text{Annual cost (Option 1)} = 10400 \text{ L} \times $1/\text{L} = $10400 Cost if using Option 2 (larger quantity, bigger tins): \text{Annual cost (Option 2)} = 10400 \text{ L} \times $0.10/\text{L} = $1040

  4. Calculate the savings in a year.

    Savings=Annual cost (Option 1)−Annual cost (Option 2)\text{Savings} = \text{Annual cost (Option 1)} - \text{Annual cost (Option 2)}

    \text{Savings} = $10400 - $1040 = $9360

    The amount saved in a year if the bigger tins are used is \boxed{9360}$.

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