Question 12.4: Suppose our ice cream vendor, who must pay $300 per day to r...

Suppose our ice cream vendor, who must pay $300 per day to rent her cart, wants to make $100 profit a day. She sells ice cream cones for $3 and the variable costs of making the ice cream cones are $0.50 per cone. How many ice cream cones must she sell per day to have a profit of $100?

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The necessary quantity to have a profit of $100 is: (Profit + FC)/(P – VC) = ($100 + $300)/($3 – $0.50) = 160 ice cream cones

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