Question

Searches related to As part of a promotion, a local ice cream store is giving away free ice cream cones to the first 20 customers After that, ice cream cones cost $3.00 Is the store's profit proportional to the number of customers? Explain.

Answer 1

Yes, store's profit is proportional to number of customers

Explanation:

Yes, the profit is proportional to the number of customers.

Profit = Revenue - Cost = (Price x Quantity) - Cost

Profit = (0 x 20) + (3 x q) - c(20+q) : Where q refers to quantity beyond 20, & c is average cost per unit

Profit = 3q - 20c - cq = (3 - c)q + 20c

As 20c is constant, component of equation has coefficient 'q' which stands for quantity of sales ie number of customers