Seth supplies shoes to Narayan and Kipling. Each pair of shoes has a list price of $50 and costs Seth $25. As Kipling buys in bulk, it receives a 10% trade discount for every order for 100 pairs of shoes or more. Narayan receives a 15% discount irrespective of order size, because that company collects the shoes, thereby saving Seth any distribution costs. The cost of administering each order is $50 and the distribution cost is $1,000 per order. Narayan makes 10 orders in the year, totalling 420 pairs of shoes, and Kipling places 5 orders for 100 pairs. Required The most profitable customer for Seth is .

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Seth supplies shoes to Narayan and Kipling. Each pair of shoes has a list price of $50 and costs Seth
$25. As Kipling buys in bulk, it receives a 10% trade discount for every order for 100 pairs of shoes or
more. Narayan receives a 15% discount irrespective of order size, because that company collects the
shoes, thereby saving Seth any distribution costs. The cost of administering each order is $50 and the
distribution cost is $1,000 per order. Narayan makes 10 orders in the year, totalling 420 pairs of shoes,
and Kipling places 5 orders for 100 pairs.
Required
The most profitable customer for Seth is
Transcribed Image Text:Seth supplies shoes to Narayan and Kipling. Each pair of shoes has a list price of $50 and costs Seth $25. As Kipling buys in bulk, it receives a 10% trade discount for every order for 100 pairs of shoes or more. Narayan receives a 15% discount irrespective of order size, because that company collects the shoes, thereby saving Seth any distribution costs. The cost of administering each order is $50 and the distribution cost is $1,000 per order. Narayan makes 10 orders in the year, totalling 420 pairs of shoes, and Kipling places 5 orders for 100 pairs. Required The most profitable customer for Seth is
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