Dan has a newspaper stand where he sells papers for $0.50 each. The papers cost
ID: 3436040 • Letter: D
Question
Dan has a newspaper stand where he sells papers for $0.50 each. The papers cost him $0.30 each, giving him a 20-cent profit on each one he sells. From past experience, Henry knows that
20% of the time he sells 100 papers
20% of the time he sells 150 papers
30% of the time he sells 200 papers
30% of the time he sells 250 papers
Assuming that Dan believes the cost of a lost sale is 10 cents and any unsold papers cost him $0.30, simulate Dan's profit outlook over 5 days if he orders 175 papers for each of the 5 days. Use the following random numbers: 52, 06, 50, 88, 53.
Day
Random number
Number of papers demanded
Number of papers ordered
Number of papers sold
Number of papers left over
Number of sales lost
Profit
1
52
175
2
6
175
3
50
175
4
88
175
5
53
175
Day
Random number
Number of papers demanded
Number of papers ordered
Number of papers sold
Number of papers left over
Number of sales lost
Profit
1
52
175
2
6
175
3
50
175
4
88
175
5
53
175
Explanation / Answer
The table is as follows:
Day Random number Papers demanded Papers sold Papers left over sales lost profit net profit 1 52 175 52 123 12.30 10.40 -1.90 2 6 175 6 169 16.90 1.20 -15.70 3 50 175 50 125 12.50 10.00 -2.50 4 88 175 88 87 8.70 17.60 8.90 5 53 175 53 122 12.20 10.60 -1.60Related Questions
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