Potato Purchase Calculation for Your Grocery Store
How much will your grocery store pay in total if you decide to purchase 0 bushels? 60 bushels? 100 bushels?
The grocery store would pay $0 for 0 bushels, $2,300 for 60 bushels, and $3,500 for 100 bushels of potatoes based on the distributor's pricing structure.
Calculation of Total Cost for Each Scenario
For up to 50 bushels, the price is $40 per bushel.
For each bushel above 50, the price is reduced to $30 per bushel.
Now, let's calculate the total cost for each scenario:
a. If you decide to purchase 0 bushels:
Total cost = 0 bushels * $40 per bushel = $0
b. If you decide to purchase 60 bushels:
For the first 50 bushels: 50 bushels * $40 per bushel = $2,000
For the additional 10 bushels (above 50): 10 bushels * $30 per bushel = $300
Total cost = $2,000 + $300 = $2,300
c. If you decide to purchase 100 bushels:
For the first 50 bushels: 50 bushels * $40 per bushel = $2,000
For the additional 50 bushels (above 50): 50 bushels * $30 per bushel = $1,500
Total cost = $2,000 + $1,500 = $3,500
So, the total cost for each scenario would be:
0 bushels: $0
60 bushels: $2,300
100 bushels: $3,500