Question

You own a coffee shop where you can buy bagels from a vendor for $1.45 each and sell them for $1.85 each. Unsold bagels are discarded. Over the past 10 days, you purchased 40 bagels each day and sold 40 bagels for 4 days and 30 bagels for 6 days. Calculate the potential profit to be made if you order 40 bagels, but only sell 30.

Answer 1

$-2.50

Explanation:

Profit = total revenue - total cost

total revenue = selling price x amount sold

= 1.85 x 30 = $55.50

total cost = cost price x amount purchased

1.45 x 40 = $58

Profit = 58 - 55.5 = $2.50