Judy sells custom picture frames. The standard frame costs $52.00 with a one-time shipping fee of $24.99. The specialty frame costs $58.00, and Judy pays the shipping cost. A customer would like to order 4 frames. How much money will Judy make if the customer orders standard frames instead of specialty frames?

Question

1)$0.99
2)$24.00
3)Both frames will make Judy the same amount of money.

Answer 1

To determine how much money Judy will make if the customer orders standard frames instead of specialty frames, we need to calculate the total cost for both types of frames.

1. Calculating the cost for standard frames:

   • Cost of 4 standard frames: \(4 \times 52.00 = 208.00\)
   • One-time shipping fee: \(24.99\)
   • Total cost for standard frames: \(208.00 + 24.99 = 232.99\)

2. Calculating the cost for specialty frames:

   • Cost of 4 specialty frames: \(4 \times 58.00 = 232.00\)
   • Judy pays the shipping cost (which means the customer does not pay for shipping), so there is no shipping fee added.
   • Total cost for specialty frames: \(232.00\)

Now, let's calculate Judy's profit from both types of frames. Assuming she pays shipping for standard frames, her revenue from specialty frames is the total amount charged; she incurs no shipping cost when selling specialty frames.

3. Profit for standard frames:

   • Revenue (total price charged): \(232.99\)
   • Cost (frames + shipping fee): \((208.00 + 24.99) = 232.99\) (No extra cost incurred by Judy for shipping)
   • Profit from standard frames is \(232.99 - 232.99 = 0.00\)

4. Profit for specialty frames:

   • Revenue (total price charged): \(232.00\)
   • Cost (just the 4 frames): \(232.00\) (Shipping is paid by Judy)
   • Profit from specialty frames is \(232.00 - 232.00 = 0.00\)

So for both options, Judy does not make any money (or rather breaks even) after her costs for both types of frames.

Thus, the answer is 3) Both frames will make Judy the same amount of money ($0.00).