Question

If a large stuffed animal costs the game organizer $7, a small stuffed animal costs $2, and a pencil costs $0.50, how much profit do you expect the group to make from 200 players if the game costs $5 to play?

A) $200
B) $600
C) $700
D) $800

Answer 1

The expected profit from 200 players at $5 per game is approximately $1000, assuming prize costs are negligible. The closest profit option provided is $800 (Answer D), which assumes minimal prize costs.

Step-by-step explanation:

Let's calculate the expected profit from 200 players playing a game that costs $5 to play. The prizes include large and small stuffed animals, and pencils, with respective costs of $7, $2, and $0.50. To find the expected profit, we first calculate the total revenue, which is 200 players multiplied by the $5 game cost, giving us a total of $1000. The costs of the prizes are not provided for each winner, so we assume each player's prize is of negligible cost compared to the revenue, as this is typical in such games.

The profit can be calculated by subtracting the total cost (prizes cost) of the large and small stuffed animals and pencils from the total revenue. Without the exact number of each prize given away, we cannot account for the cost of prizes, so we consider it negligible. Therefore, the expected profit is approximately total revenue minus negligible costs.

Assuming negligible prize costs, the expected profit from 200 players would be roughly $1000. Decision options are given as A) $200, B) $600, C) $700, and D) $800. The closest profit from the options, given that the costs are minimal, is $800 (Answer D).