Answer:
The price went from 2.50 dollar per unit to 1.25
And quantity sold of first hand muffin increase from 500 to 1,600
Explanation:
First day:
We build the equation and solve considering:
a= first hand muffin sold at 2.5 dollar
b = left-over sold at 0.5 dollar
considering the shop made 2,000 muffin and the cost is 1 dollar per muffin:
quantities equation: a + b = 2,000
price equation: 2.5a + 0.5b = 2,000
2.5(2,000 - b) + 0.5b = 2,000
5,000 - 2.5b + 0.5b = 2,000
3,000/2 = b = 1,500
a = 2,000 - b = 2,000 - 1,500 = 500
It sale 500 dollar of muffin at 2.5 and 1,500 at 0.5 getting a total of 2,000 revenue to cover the cost.
Second day:
There is a decrease in price to 1.25 per muffin
This generates a profit of 400 dollar thus:
(sales price less cost) x quantity = profit
(1.25 - 1) x a = 400
a = 400/0.25 = 1,600
