Please help

Question

A grocery store bought yogurt for $2.40 per container and stored it in two refrigerators. During the night, one refrigerator malfunctioned and ruined 14 containers. If the remaining yogurt is sold for $4.08 per container, how many containers did the store buy if they made a profit of $104.16?

Answer 1

There are two solutions possible depending on how you define the profit. If profit is defined as Sales revenue less cost of good sold, then the answer is different than if you define profit as Sales less cost of goods sold less loss  If the loss is classified as unusual and non-recurring, it is reported as an extraordinary item and not included in the calculation of profit.

 

If loss is not included in calculating profit:

 

$4.08 - $2.40 = $1.68 profit per unit

Total profit / profit per unit = number of units

$104.16 / $1.68 = 62 units.

The company bought 62 + 14 units = 76 units.

 

If loss is included in the calculation of profit:

Amount of loss: 14 units * $2.40 per unit = $33.60

Profit + loss = Profit on sold units

 

$104.16 + $22.60 = $137.76

$137.76 / $1.68 = 82 units

The company bought 82 + 14 = 96 units.

 

The company has to sell 20 units to make up for the loss of 14 units. 20 * $1.68 = $33.60