Question

a store received 500 containers of milk to be sold by Febuary 1. Each container the store sold $0.83 and sold for $1.67. The store signed a contract with the distributor in which the distributor agreed to a $0.50 refund for every container not sold by Febuary 1. If 470 containers were sold bu February 1, how much profit did the store make?

Answer 1

$409.80.

The amount of net profit the store makes on each container is given by 1.67-0.83 (the amount it is sold for subtracted by the amount it costs the store), which is $0.84 per container.  They sell 470 containers, so the net profit at this point is 470(0.84) = $394.80.

However, since the distributor is giving the store a $0.50 refund on all every container under 500 that the store sells, the store gets additional money back:

500-470 = 30 containers not sold
30(0.50) = 15

So the total profit is $394.80 + 15 = $409.80.