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Mandy finds she can get a discount on corn cobs if she buys in bulk. She can get 100 kilograms of corn cobs for $160 from Matt, on condition that she buys at least 100 kilograms. From another supplier, Robert, she can buy small quantities of corn cobs (100 or less) for $1 per cob or larger quantities (more than 100) for $0.60 per cob. Mandy charges all of her customers by weight, so she gets $5 per kilogram of corn cobs or $1.25 for an individual corn cob. If Mandy is going to sell over 100 kilograms of corn cobs today, what is the best profit per corn cob she can make?

Sagot :

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Answer:

In this scenario, the best profit per corn cob Mandy can make is by buying in bulk from Matt, even though the cost per cob seems higher. Here's why:

Cost per cob from Matt (bulk purchase):

Total cost: $160 for 100 kilograms

Cost per kilogram: $160 / 100 kg = $1.6 per kg

Since there are roughly 12.5 cobs per kilogram (average weight assumption), cost per cob: $1.6/kg * 1 kg/12.5 cobs = $0.128 per cob (approximately)

Cost per cob from Robert (large quantities):

Cost per cob: $0.60

Selling price per cob for Mandy:

$1.25 per cob

Profit comparison:

Profit from Matt: $1.25 - $0.128 ≈ $1.12 per cob (approximately)

Profit from Robert: $1.25 - $0.60 = $0.65 per cob

Therefore:

Buying in bulk from Matt (at $0.128 per cob) allows Mandy to sell at a higher profit ($1.12) compared to buying from Robert ($0.65 profit per cob) even though the cost per kilogram seems more expensive.

Note: This calculation assumes an average weight of 12.5 cobs per kilogram, which can vary depending on the corn variety. The actual profit per cob from Matt might differ slightly.

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