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mspezial
07-27-2011, 11:03 AM
I have a case of wine that costs My retailer will be purchasing 200 of them. If he does that I will give him 15 cases of a different wine for free (this? wine costs per case).? What will the net case cost be for the wine that used to cost if he gets the 15 cases of the wine for free?

tkhunny
07-27-2011, 02:45 PM

In all situations:

\frac{Total\;Cost}{Total\;Count}\;=\;Average\;Cost

mspezial
07-27-2011, 03:12 PM
I understand the formula you posted but here is my specific question...

*Wine Brand 1--> Cost= $92.30 per case (12 bottles per case) *Retailer is purchasing 200 caes of this item *When the retailer does this, he gets 15 cases of wine brand #2 for free *Wine brand's case cost is$83.90 per case (12 bottles per case)

After factoring in the 15 free cases, what will wine brand #1's new case cost drive down to? As I mentioned, it's $92.30 right now, but that's without factoring in the free 15 cases of wine brand #2. tkhunny 07-27-2011, 09:18 PM You do not understand the forumla, mostly because it isn't one. It's an idea. How did you calculate the average price while ignoring the free product? Do EXACTLY the same things with the free product. EXACTLY!$75 for 10 items? $75/10 =$7.50

Throw in five (5) free ones. That's $75 for 15 items. Now what? Denis 07-27-2011, 10:03 PM *Wine Brand 1--> Cost=$92.30 per case (12 bottles per case)
*Retailer is purchasing 200 cases of this item
*When the retailer does this, he gets 15 cases of wine brand #2 for free
*Wine brand's case cost is \$83.90 per case (12 bottles per case)

You seem to be over-thinking it!
Treat the 15 cases as a discount:
1: purchase price = p = 200 * 92.30
2: discount = d = 15 * 83.90
3: net = n = p - d

So net cost per case = n / 200