The Food Barn sells candy bars at a price of 5 for $1. Margaret bought $12 worth of candy bars there and resold half of them at a price of 3 for $1 and half at a price of 2 for $1. How much profit did she make (assuming her labor costs are zero)?
She buys 60 candy bars (5 x 12). Sells half (30 bars) for $10 (30/3) and the other half (30 bars) for $15 (30/2). She makes a total of $25. Subtract what she paid for the original candy bars ($12) from what she made ($25). Profit of $13.
To solve this problem, we need to calculate Margaret's cost and revenue from selling candy bars.
Let's begin by finding out how many candy bars Margaret bought for $12.
Since the price of 5 candy bars is $1, we can calculate the number of candy bars purchased by multiplying the total expenditure by 5:
Number of candy bars bought = $12 x 5 = 60 candy bars
Now, let's determine how many candy bars Margaret resold at each price.
Half of the candy bars were resold at a price of 3 for $1, so:
Number of candy bars resold at 3 for $1 = 60 candy bars / 2 = 30 candy bars
Similarly, the remaining half of the candy bars were resold at a price of 2 for $1, so:
Number of candy bars resold at 2 for $1 = 60 candy bars / 2 = 30 candy bars
Next, let's calculate the revenue generated from reselling each batch of candy bars.
Revenue from selling 30 candy bars at 3 for $1:
Number of sets of 3 candy bars = 30 candy bars / 3 = 10 sets
Revenue = 10 sets x $1 = $10
Revenue from selling 30 candy bars at 2 for $1:
Number of sets of 2 candy bars = 30 candy bars / 2 = 15 sets
Revenue = 15 sets x $1 = $15
Now, let's calculate the total revenue Margaret earned from reselling the candy bars:
Total revenue = Revenue from the first batch + Revenue from the second batch
= $10 + $15
= $25
To find the profit, we need to subtract the initial cost from the total revenue:
Profit = Total revenue - Cost
= $25 - $12
= $13
Therefore, Margaret made a profit of $13.