Problema Solution
Micheal Reeves, on 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 $0.08 per scoop. If Micheal switches to the smaller scoops, by how much will his profit per container go up or down?
Answer provided by our tutors
s.p of 98 smaller scoops = 0.08*98 = $7.84
c. p. = $17.50
loss = 17.50 - 7.84 = $9.66