APBUSINE

BUSINESS PROBLEMS

Assume the following. The product sold at a snow cone stand at OLAP is only ground up ice in a plastic cup with syrup poured over the ice, and cash control knows the amount of money that should be in the cash register by keeping count of the number of plastic cups that are sold. If a cup is not sold for some reason, such as it was broken in the case, then it is not counted against inventory.

For the purpose of the following problems, we will assume the following data:

A snow cone sold costs the guest $1.75,

The plastic cup costs .67,

The cost of making the ice .07 (per serving),

The cost of the syrup .21 (per serving),

And one case of plastic cups has 200 cups in it

1. If 21 cases are used, but 34 plastic cups are left over, how many snow cones were sold?

2. What is the cost of each individual snow cone to the park?

3. What is the total cost of the snow cones sold at the park with your previous calculations?

4. What is the gross profit to the park?

5. What is the net profit to the park?

Copyright © 1994 © 1996 with all rights reserved by
William V. Thayer, Mathematics Department
St. Louis Community College at Meramec
11333 Big Bend Blvd., St. Louis, MO 63122-5977
Telephone: 314 984 7866
Email: thayer@stl-online.net