Copper Creek Nursery purchases annual and perennial plants from Commercial Landscapers. If the nursery purchases at least 3,000 plants, the cost per annual plant is $1.50 and the cost per perennial plant is $2.00. If 3,001 or more plants are purchased, then a bulk discount of 20% is given for the entire purchase. If Copper Creek purchases 3,000 annual plants and 2,000 perennial plants, what will be the total variable cost of the plants purchased?

Question

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Total Variable costs = (Cost per annual plant x annual plants purchased) + (Cost per perennial plant x perennial plants purchased) = [{$1.50 x (1 - 20%)} x 3,000] + [{$2.00 x (1 - 20%)} x 2,000] = $3,600 + $3,200 = $6,800.

Copper Creek Nursery Purchases Annual and Perennial Plants from Commercial