Problema Solution
Michael Reeves, an ice cream vendor, pays $17.50 for a five-gallon container of premium ice cream. From this quantity he sells 80 scoops at $0.90 per scoop. If he sold smaller scoops, he could sell 98 scoops from the same container; however, he could charge only $0.80 per scoop. If Michael switches to the smaller scoops, by how much will his profit per container go up or down? (Profit = Sales – Expenses)
Answer provided by our tutors
Toatl cost is $17.50
scoops are 80 at $0.90 the earning is $ 72
Smaller scoops 98 at $0.80
Earning is $78.4
extra profit earned by selling smaller scoops=78.4-72=$6.4