Problema Solution
Michael Reeves, and ice cream vendor, pays $17.40 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 only charge $0.80 per scoop. If michael switches to the smaller scoops, by how much will his profit per container go up or down? Using your answers from the question above, by what percent will the profit change?
Answer provided by our tutors
Scenario 1: 80 scoops at $0.90 per scoop
Scenario 2: 98 scoops at $0.80 per scoop
Scenario 1: Profit: 0.90(80) - 17.40 = 72.00 - 17.40 = $54.60 profit
Scenario 2: Profit: 0.80(98) - 17.40 = 78.40 - 17.40 = $61.00 profit
Switching to the smaller scoop scenario will increase his profits by $6.40.