A wholesale food retailer is offered $14 per carton for 5000 cartons of peaches. The wholesaler can buy peaches from their growers at $12.50 per carton. Shipping costs $1.50 per carton, for the first 1000 cartons, and $1.00 per carton for every carton over that. Will taking this opportunity increase the value of the wholesale food retailer?

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The retailer will make $14 per carton for 5000 cartons, for a total of $70,000. The retailer will pay $12.50 per carton for 5000 cartons, for a total of $62,500. The retailer will pay $1.50 per carton for the first 1000 cartons, for a total of $1500. The retailer will pay $1.00 per carton for the remaining 4000 cartons, for a total of $4000. The total cost to the retailer is $62,500 + $1500 + $4000 = $68,000. The retailer will make a profit of $70,000 - $68,000 = $2000.

A Wholesale Food Retailer Is Offered $14 Per Carton for 5000