Question

POSSIBLE POINTS 16A student owns a snowball stand and wants to calculate the profit (if the student has even earned a profit). The problem is that the student's little brotherkeeps giving snowballs away to his friends. Every time he does this, the student loses money.Part A: Each snowball costs the student $0.30 to make and he sells them for $1.25 each. What is the profit per snowball?Part B: Last week, the little brother gave away 12 snowballs. Assuming the student would have sold these 12 snowballs, and using your answerfrom part A, calculate how much money the student lost in profits. Show your work.

Answer 1

Part A:

Each snowball costs $0.30 to make and is sold for $1.25 each.

The profit per snowball is:

P = $1.25 - $0.30 = $0.95

The profit is $0.95 per snowball

Part B:

Little brother gave away 12 snowballs. The student lost the profit of those 12 snowballs:

12 x $0.95 = $11.40

The student lost $11.40 in profits

Note: The student also lost the $0.30 for the cost to make each snowball, but it's not accounted for.