Jeff sells the New York Times Sunday newspaper at a city corner near several churches. He sells each newspaper for $6.50 after purchasing them for $4.00. Any unsold newspaper can be returned to the New York Times for a $0.75 credit. Jeff expects demand on Sunday to be 75, 100, 125, or 150 newspapers and would like to order one of these four quantities from the New York Times. If Jeff orders 150 papers from the New York Times and the Sunday demand is for 100 papers, profit will be ________.
A)- $56.00
B)$312.50
C)$250.00
D)$87.50

Question

Quizplus · Accepted Answer

Jeff's profit for selling 100 papers when he orders 150 is calculated as follows: Revenue from selling 100 papers = 100 * $6.50 = $650. Cost of purchasing 150 papers = 150 * $4.00 = $600. Credit for returning 50 unsold papers = 50 * $0.75 = $37.50. Total profit = Revenue - Cost + Credit = $650 - $600 + $37.50 = $87.50.

Jeff Sells the New York Times Sunday Newspaper at a City