Sarah sells tulips at her store and charges her customers $12 per dozen. She sells 20...

Sarah sells tulips at her store and charges her customers $12 per dozen. She sells 20 dozen each day.

The tulips that Sarah orders to sell in her store cost $216 total for 240 tulips.

Based on this information, the profit total that Sarah would make if she were able to sell all of the tulips, sold in bouquets at $12 per dozen, would be __________.

Expert Solution

Sarah sells tulips at her store and charges her customers $12 per dozen.

She sells 20 dozen each day.

Hence, if Sarah is able to sell all 20 dozen or 240 tulips to her customers at $12 per dozen, she gets a Total Revenue

TR = $12×20

or, TR = $240.........(1)

The tulips that Sarah orders to sell in her store cost $216 total for 240 tulips.

Hence, Total Cost of 240 or 20 dozens of tulips is

TC = $216..........(2)

If Sarah is able to sell all the 240 or 20 dozens tulips in bouquets at $12 per dozen, then Sara's Total Profit is

π = TR - TC

or, π = $240 - $216

or, π = $24

Hence, Total Profit that Sarah would make would be $24.

Hope the solution is clear to you my friend.

Rahul Sunny answered 2 years ago

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