Question

Leo's Fruit Stand has always stocked just one brand of apples: Gala. Gala apples cost Leo $0.15each, and he sells them for $0.52. Leo is considering adding Rome apples to his stand. They will cost him $0.21 each and he plans to sell them for $0.75 each. Leo expects Rome apple volume to be half of Gala's previous volume of 2,900 per month. He also expects 72% of Rome volume to be taken from Gala volume. What percent of total dollar sales will the Rome apples represent following its introduction?

Answer 1

The Rome apples will represent approximately 53.01% of the total dollar sales after their introduction, considering the expected decrease in Gala apple volume and the new sales from Rome apples.

Step-by-step explanation:

To determine what percent of total dollar sales the Rome apples will represent following their introduction, we need to calculate the expected sales of both Gala and Rome apples. Initially, Gala apples have a volume of 2,900 units per month. After the introduction of Rome apples, which are expected to be half of Gala's previous volume, this means Rome volume would be 1,450 units (2900 / 2). However, 72% of Rome's volume is expected to be taken from Gala apples, so the new Gala apple volume would be 2900 - (0.72 × 1450) = 2900 - 1044 = 1856 units.

The total sales from Gala apples would be $0.52 × 1856 = $964.32, and the total sales from Rome apples would be $0.75 × 1450 = $1087.50. Adding these together gives a total revenue of $964.32 + $1087.50 = $2051.82. The percentage of total dollar sales from Rome apples is calculated by dividing the Rome apple sales by the total sales and then multiplying by 100, which is ($1087.50 / $2051.82) × 100 ≈ 53.01%.