The manager of Paul's fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Since this seedless watermelon costs $4, will sell for $7, and is highly perishable, he only expects to sell between 6 and 9 of them. What is the payoff value for the purchase of 6 watermelons when the demand is for 7 or more watermelons?
A) 18
B) 21
C) 28
D) 49

Question

Quizplus · Accepted Answer

The payoff value is calculated by multiplying the number of watermelons sold by the profit per watermelon. If 6 watermelons are purchased and sold, the profit is (7-4) * 6 = 18.

The Manager of Paul's Fruit and Vegetable Store Is Considering