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John Chen can purchase basic loaves of white bread from a local bakery for $1.50 each and sell them in his deli for $3.00 each. He can buy loaves of specialty bread for $2.50 each and sell them for $4.50 each. Research indicates that he can sell 52 loaves of white bread or 28 loaves of specialty bread each day. What will be the difference in daily profit for his deli based on selling the white bread instead of the specialty bread?

Respuesta :

Answer: The difference in daily profit by selling white bread instead of speciality bread is $22.

Daily Profit from selling white bread:

Selling Price per loaf    $3 .0

Cost per loaf                   $1.5

Profit per loaf              [tex]1.5 ( 3.0 - 1.5)[/tex]

No. of units sold per day  52

Profit per day              [tex]52 * 1.5 = 78[/tex]      

Daily Profit from selling specialty bread:

Selling Price per loaf    $4.50

Cost per loaf                   $2.50

Profit per loaf              [tex]2 ( 4.5 - 2.5)[/tex]

No. of units sold per day  28

Profit per day              [tex]28 * 2 = 56[/tex]      

Hence the difference in daily profit is [tex]78 - 56 =22[/tex]

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