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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?
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Step-by-step solution
4 stepsCalculate 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}Calculate the total amount of liquid used in a year.
There are 52 weeks in a year.
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} = $10400Cost if using Option 2 (larger quantity, bigger tins):\text{Annual cost (Option 2)} = 10400 \text{ L} \times $0.10/\text{L} = $1040Calculate the savings in a year.
\text{Savings} = $10400 - $1040 = $9360The amount saved in a year if the bigger tins are used is
\boxed{9360}$.
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