Bill, the manager of a frozen treat shop in Palo Alto wants to know how much profit he will make if he sold everything he has in stock in a single day. Bill has determined that the profit can be computed with this formula: TP = TR - TC Each order of cookie ice cream contains 6 ounces of ice cream and 2 pieces of cookies. Bill sells the ice cream treat for $4 each. He also sells the cookies just by themselves without the ice cream for $1.50 per pack of 2. Every day, Bill starts the day with the following stock level: 12 lbs of assorted flavored ice cream 80 pcs of cookies Each lb of ice cream costs $1.50. Cookies cost $0.25 each. How much profit can Bill make from the store if all the available stock is sold in a single day? Explain your answer.
Answer)
Ice cream available for ice cream treat:
12 lbs×16 ounces for each lb/6 ounces per ice cream pack
=32 packs
Therefore, Ice cream selling price:
32 packs×$4=$128
Each pack has 2 biscuits which says that 64 buits are sold along with ice cream (i.e 32 packs×2 biscuits)
Biscuits sale: 16 biscuits (i.e 80 pcs-64 pcs)/2 per pack×$1.5
=$12
total sales=$128+$12=$140
Cost:
Ice cream:12 lbs×$1.5=$18
Biscuits:80 pcs×$0.25=$20
Total cost=$18+$20=$38
Total profit: $140-$38=$102
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