Question

# Bill, the manager of a frozen treat shop in Palo Alto wants to know how much...

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.

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