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

To calculate the total cost for each quantity of potatoes purchased (0 bushels, 60 bushels, and 100 bushels), we can use the pricing information provided by the distributor:

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

← Delivering quality service in the cruise industry challenges and strategies Balanced scorecard perspectives which category is not included →

More Posts: