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)
*word your answer to include "increase" or "decrease." For example, write "$47.35 increase"
Using your answer from the questions above, by what percent will the profit change? (Round to the nearest tenth of a percent.)
*word your answer to include "increase" or "decrease." For example, write "25.5% decrease�
80 scoops * .90 = $72 income for big scoops
98 * .80 = $78.40 income for little scoops
difference = $6.40 increase
original profit = 72-17.5 = 54.50
final profit = 78.40 - 17.50 = 60.90
100 * difference / original = 100*6.4/54.5
= 11.7 % increase in profit
Well, let's do some math with a sprinkle of humor!
First, let's find out Michael's profit with the original scoops.
Sales = 80 scoops * $0.90 per scoop = $<<80*0.90=72>>72
Expenses = $17.50
Profit = Sales - Expenses
Profit = $72 - $17.50
Profit = $<<72-17.50=54.50>>54.50
Now, let's calculate the profit with the smaller scoops.
Sales = 98 scoops * $0.80 per scoop = $<<98*0.80=78.40>>78.40
Profit = Sales - Expenses
Profit = $78.40 - $17.50
Profit = $<<78.40-17.50=60.90>>60.90
So, by switching to the smaller scoops, Michael's profit per container will increase by $60.90 - $54.50 = $6.40.
Now, let's calculate the percent change in profit.
Percent change = (New Profit - Old Profit) / Old Profit * 100
Percent change = ($60.90 - $54.50) / $54.50 * 100
Percent change = $6.40 / $54.50 * 100
Percent change ≈ 11.74%
Therefore, the profit will increase by approximately 11.7%.
Hope that puts a smile on your face!
To calculate the profit per container, we need to determine the total sales and expenses for each scenario.
1. Selling 80 scoops at $0.90 per scoop:
Total sales = 80 * $0.90 = $72.00
Expenses = $17.50 (cost of ice cream container)
Profit = Total sales - Expenses = $72.00 - $17.50 = $54.50
2. Selling 98 scoops at $0.80 per scoop:
Total sales = 98 * $0.80 = $78.40
Expenses = $17.50 (cost of ice cream container)
Profit = Total sales - Expenses = $78.40 - $17.50 = $60.90
By switching to the smaller scoops, Michael's profit per container will increase by $60.90 - $54.50 = $6.40.
To calculate the percentage change in profit, we can use the following formula:
Percentage change = ((New value - Old value) / Old value) * 100
Percentage change = (($6.40 - $54.50) / $54.50) * 100
Percentage change = (-$48.10 / $54.50) * 100
Percentage change = -88.1%
The profit will decrease by 88.1%.
To find out the profit per container and the percent change, we need to calculate the expenses and sales for both scenarios.
Scenario 1 (selling 80 scoops):
Expenses: $17.50 (cost of a five-gallon container)
Sales: 80 x $0.90 = $72
Profit: Sales - Expenses
Profit = $72 - $17.50 = $54.50
Scenario 2 (selling 98 smaller scoops):
Expenses: $17.50 (cost of a five-gallon container)
Sales: 98 x $0.80 = $78.40
Profit: Sales - Expenses
Profit = $78.40 - $17.50 = $60.90
The profit per container in Scenario 2 is $60.90, while in Scenario 1 it is $54.50.
The profit increases by $60.90 - $54.50 = $6.40.
Therefore, the profit per container will increase by $6.40.
To find the percent change, we can calculate the percentage increase:
Percentage Increase = [(New Value - Old Value) / Old Value] x 100%
Percentage Increase = [($60.90 - $54.50) / $54.50] x 100%
Percentage Increase = ($6.40 / $54.50) x 100%
Percentage Increase = 0.11715 x 100%
Percentage Increase ≈ 11.7%
Therefore, the profit per container will increase by approximately 11.7%.