Question
The Iowabookstore bought more Hawkeyes Champs calendars than it could sell. It was nearly June and 270 calendars remained in stock. The store paid $
The Iowabookstore bought more "Hawkeyes Champs" calendars than it could sell. It was nearly June and
270 calendars remained in stock. The store paid $ 2.75 each for the calendars and normally sold them for $ 8.50 Since February, they had been on sale for $ 6.00,
and 2 weeks ago the price was dropped to $ 4.85. Still, few calendars were being sold. The bookstore manager thought it was no longer worthwhile using shelf space for the calendars. The proprietor of HamptonCollectibles offered to buy all 270calendars for $81. He intended to store them until the 2012 football season was over and then sell them as novelty items.
The bookstore manager was not sure she wanted to sell for $0.30 calendars that cost $2.75. The only alternative, however, was to scrap them because the publisher would not take them back.
Requirements
1. | Compute the difference in profit between accepting the $ 81 offer and scrapping the calendars.
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