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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?

  • math -

    current revenue:
    80 scoops @ $0.90 = $72.00

    proposed revenue:
    98 scoops @ $0.80 = $78.40

    clearly the profit goes up by $6.40

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