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Math  /  Numbers & Operations

QuestionAn Aldi store just opened up next to your local Walmart. To compete with Aldi's prices, Walmart reduces the price of milk to $1.13\$ 1.13 per gallon. This is a 61.40%61.40 \% reduction in the price of milk. If Walmart normally sells 126 gallons of milk per day, how much profit loss is it costing them to compete with Aldi per day just in milk sales? Round to the nearest cent.
Your Answer: □\square □\square Answer units

Studdy Solution

STEP 1

1. The original price of milk is reduced by 61.40% 61.40\% to $1.13 \$1.13 per gallon.
2. Walmart sells 126 126 gallons of milk per day.
3. We need to calculate the daily profit loss due to the price reduction.

STEP 2

1. Determine the original price of milk.
2. Calculate the price reduction per gallon.
3. Calculate the total daily profit loss.

STEP 3

Let P P be the original price of milk per gallon. The reduction is 61.40% 61.40\% , so the new price is:
P−0.6140P=1.13 P - 0.6140P = 1.13

STEP 4

Simplify the equation to find P P .
0.3860P=1.13 0.3860P = 1.13

STEP 5

Solve for P P .
P=1.130.3860≈2.93 P = \frac{1.13}{0.3860} \approx 2.93

STEP 6

Calculate the price reduction per gallon.
Price reduction per gallon=P−1.13=2.93−1.13=1.80 \text{Price reduction per gallon} = P - 1.13 = 2.93 - 1.13 = 1.80

STEP 7

Calculate the total daily profit loss.
Daily profit loss=126×1.80=226.80 \text{Daily profit loss} = 126 \times 1.80 = 226.80
The profit loss per day due to the price reduction is:
226.80\boxed{226.80} Answer units: dollars

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