document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1132695>Question 1132695</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A grocery store is reevaluating the retail price of their oranges. They have a contract where they can purchase oranges for $0.52 per pound. However, this includes high quality oranges (about 40% of the time), low quality oranges (55%), and occasionally rotten fruit (5%). Suppose they sell 80% of all high quality oranges at $1.99 per pound, 65% of all low quality oranges at $1.49 per pound (they offer a sale), and they cannot sell any of the rotten fruit.\r<BR>\n" );
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document.write( "What is the store's expected profit from a random shipment of 500 pounds of oranges? We do not consider personnel and other overhead costs, only the wholesale cost of the oranges. (Give your answer as a number, no dollar sign included.) </SPAN>\n" );
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document.write( "40% of the 500 pounds, or 200 pounds, is high quality; their profit per pound on those is $1.99-$0.52 = $1.47.<BR>\n" );
document.write( "They sell 80% of those high quality oranges, which is 160 pounds.  Presumably the other 20% of them (40 pounds) are not sold.<br><BR>\n" );
document.write( "55% of the 500 pounds, or 275 pounds, is low quality; their profit per pound on those is $1.49-$0.52 = $0.97.<BR>\n" );
document.write( "They sell 65% of those low quality oranges, which is 178.75 pounds.  And again the assumption is the other 35% of those, 96.25 pounds, do not get sold.<br><BR>\n" );
document.write( "So we have 160 pounds of oranges on which the profit per pound is $1.47 and 178.75 pounds on which the profit per pound is $0.97.  The remaining oranges, 161.25 pounds, are not sold, at a \"profit\" per pound of -$0.52.<br><BR>\n" );
document.write( "The expected profit on the 500 pounds is then<br><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=160%281.47%29%2B178.75%280.97%29%2B161.25%28-0.52%29 ALIGN=MIDDLE  ALT=\"160%281.47%29%2B178.75%280.97%29%2B161.25%28-0.52%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><br><BR>\n" );
document.write( "You can do the arithmetic. </SPAN>\n" );
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