Answer: £163.75
Explanation:
To calculate the total profit that Stella makes, we'll need to consider the cost of her items and the revenue she generates from selling them. Let's break down the calculations step by step.
1. Calculate the cost of 120 hats and 150 balloons:
Cost of 120 hats = 120 hats * £0.50/hat = £60
Cost of 150 balloons = 150 balloons * £0.15/balloon = £22.50
2. Calculate the revenue from selling the first batch of items:
Revenue from selling 40 hats at £2 each = 40 hats * £2/hat = £80
3. Calculate the revenue from selling the second batch of items (hats):
Stella reduces the price of the hats by 25%, so the new price is 0.75 * £2 = £1.50/hat.
Revenue from selling 60 hats at £1.50 each = 60 hats * £1.50/hat = £90
4. Calculate the revenue from selling the first batch of balloons:
Revenue from selling 50 balloons at £1 each = 50 balloons * £1/balloon = £50
5. Calculate the revenue from selling the second batch of items (balloons):
Stella offers a 50% reduction, so the new price is 0.50 * £1 = £0.50/balloon.
Revenue from selling 30 balloons at £0.50 each = 30 balloons * £0.50/balloon = £15
6. Calculate the revenue from selling the third batch of balloons:
Stella further reduces the price by 50%, so the new price is 0.50 * £0.50 = £0.25/balloon.
Revenue from selling 45 balloons at £0.25 each = 45 balloons * £0.25/balloon = £11.25
Now, let's calculate Stella's total revenue:
Total Revenue = £80 (hats) + £90 (hats) + £50 (balloons) + £15 (balloons) + £11.25 (balloons) = £246.25
To calculate the profit, subtract the total cost from the total revenue:
Total Profit = Total Revenue - (Cost of Hats + Cost of Balloons)
Total Profit = £246.25 - (£60 + £22.50) = £246.25 - £82.50 = £163.75
So, Stella makes a total profit of £163.75 from selling hats and balloons at the carnival.