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."
Answer: $6.40 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."
Answer: 11.7%
Are my answers correct?
P1 = = 80*$0.90 - $17.50 = $54.50
P2 = 98*$0.80 - $17.50 = $60.90
Increase = P2-P1 = 60.90-54.50 = $6.40
Increase = (6.40/54.50)*100% = 11.7%.