Answer:
Her expected profit for a day's worth of pies is $24
Step-by-step explanation:
Number of pies she bakes a day = 6
Cost to produce each pie = $2
Total cost to produce 6 pies = 6 × $2 = $12
Sales price for each pie = $6
On 55% of the days, she sells all 6 pies. Total sales = 6 × $6 = $36
Profit = total sales - total cost = $36 - $12 = $24
Given Information:
Baking cost of each pie = $2
No. of pies baked a day = 6
Selling cost of each pie = $6
No. of pies sold a day = 15% 2 pies, 30% 4 pies, 55% 6 pies
Required Information:
Expected profit = ?
Answer:
Expected profit = $16.8
Step-by-step explanation:
We know that expected profit is found by
Expected profit = cost of pies sold - cost of pies produced
So first we need to find the cost related to baking the pies
cost of pies produced = cost of each each pie * no. of pies
cost of pies produced = $2*6
cost of pies produced = $12
Now we need to find out how many pies she sold a day on average
pies sold = 15% of 2 + 30% of 4 + 55% of 6
pies sold = 0.15*2 + 0.30*4 + 0.55*6
pies sold = 0.3 + 1.2 + 3.33
pies sold = 4.8
cost of pies sold = $6*4.8
cost of pies sold = $28.8
So the expected profit is
Expected profit = cost of pies sold - cost of pies produced
Expected profit = $28.8 - 12
Expected profit = $16.8
