Exercise 10: The Price List
“As you know, we offer our preferred customers quantity discounts,” Helen Maher began. “Oftentimes, such a pricing scheme is difficult to communicate, and we sometimes make mistakes in calculating the total cost of a customer’s order.”
“For example, here are the pricing terms for product SG15:”
Price per unit for the first 1,000 units is $1.00 Price per unit for the next 500 units is $0.90 Price per unit for units above 1,500 is $0.80.
“What I’d like is a simple spreadsheet that can calculate without error the total cost to a customer as a function of the customer’s quantity ordered. I want it so that anyone can put in the number ordered and then clearly find out the total cost to the customer. I’d also like the spreadsheet to be flexible enough so that at some later date I can change either the quantity break points (the 1,000 and the 1,500) or the three prices (the $1.00, $0.90, and $0.80).”