Purchase-Related Transactions

A retailer is considering the purchase of 250 units of a specific item from either of two suppliers. Their offers are as follows:

Supplier One: $400 a unit, total of $100,000, 1/10, n/30, no charge for freight.

Supplier Two: $399 a unit, total of $99,750, 2/10, n/30, plus freight of $975.

Price of Supplier One:


Price of Supplier Two:


Which of the two offers, Supplier One or Supplier Two, yields the lower price?