Question

Graymont Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.10 per gallon. However, because Graymont purchases a high volume of Solvate, ChemMaster grants the company a 14 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Graymont's factory are $130 for a shipment of twenty-five 49-gallon drums. Special storage requirements cost $0.59 per gallon.

Calculate Graymont's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51)

Answer 1

the standard price for a gallon of Solvate is $5,942 per gallon

Step-by-step explanation:

The computation of the standard price for a gallon of Solvate is shown below:

List Price $6.1 per gallon

Less: Discount at 14% 0.854 per gallon

Charges (130 ÷ (25 × 49) 0.106 per gallon

Special Storage $0.59 per gallon

Total Cost $5.942 per gallon

Hence, the standard price for a gallon of Solvate is $5,942 per gallon