25. Consider the following list of retail items sold in a small neighborhood gift shop. Average Profit per Item Item Greeting cards T-shirts Men's jewelry Novelty gifts Children's clothes Chocolate cookies Earrings Other costume jewelry Annual Volume 3,870 1,550 875 2,050 575 7,000 1,285 1,900 $ 0.40 1.25 4.50 12.25 6.85 0.10 3.50 15.00 a. Rank the item categories in decreasing order of the annual profit. Classify each in one of the categories as A, B, or C. b. For what reason might the store proprietor choose to sell the chocolate cookies even though they might be her least profitable item?

A First Course in Probability (10th Edition)
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25. Consider the following list of retail items sold in a small neighborhood gift shop.
Average Profit
per Item
Item
Greeting cards
T-shirts
Men's jewelry
Novelty gifts
Children's clothes
Chocolate cookies
Earrings
Other costume jewelry
Annual Volume
3,870
1,550
875
2,050
575
7,000
1,285
1,900
$ 0.40
1.25
4.50
12.25
6.85
0.10
3.50
15.00
a. Rank the item categories in decreasing order of the annual profit. Classify each
in one of the categories as A, B, or C.
b. For what reason might the store proprietor choose to sell the chocolate cookies
even though they might be her least profitable item?
Transcribed Image Text:25. Consider the following list of retail items sold in a small neighborhood gift shop. Average Profit per Item Item Greeting cards T-shirts Men's jewelry Novelty gifts Children's clothes Chocolate cookies Earrings Other costume jewelry Annual Volume 3,870 1,550 875 2,050 575 7,000 1,285 1,900 $ 0.40 1.25 4.50 12.25 6.85 0.10 3.50 15.00 a. Rank the item categories in decreasing order of the annual profit. Classify each in one of the categories as A, B, or C. b. For what reason might the store proprietor choose to sell the chocolate cookies even though they might be her least profitable item?
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