how is quantity discount calculated 
to calculate the quantity discount divide the total cost by the number of items at each quantity level to determine the per unit cost for example if you are getting 100 items for 300 the per unit cost is 3 300 100 if you are getting 200 items for 400 the per unit cost is 2 400 200 you can then compare these per unit costs to the cost of buying the unit individually without a quantity discount the bottom linequantity discounts mean a buyer is buying in bulk and receiving a lower cost per item than they would if they bought the items individually quantity discounts are cost effective for people or companies who know they need a product consistently for example buying toilet paper in bulk helps save costs for a household similarly if a company knows it needs timber to make houses it can buy in bulk to save on raw material costs 