Chapter 6, Problem 44AT

Solve the following word problems for the unknown. Round decimals to hundredths and percents to the nearest tenth when necessary.

Michael Reeves, an ice cream vendor, pays $17.50 for a five-gallon container of premium ice cream. From this quantity, he sells 80 scoops at $0.90 per scoop. If he sold smaller scoops, he could sell 98 scoops from the same container, however, he could charge only $0.80 per scoop. As his accountant, you are asked the following questions.

a. If Michael switches to the smaller scoops, by how much will his profit per container go up or down? $\left(\text{Profit = Sales - Expenses}\right)$

b. By what percent will the profit change? Round to the nearest tenth of a percent.