Sigma Aldrich sells pure trimyristin for $70 a gram. You can buy 2 ounces of nut
ID: 535695 • Letter: S
Question
Sigma Aldrich sells pure trimyristin for $70 a gram. You can buy 2 ounces of nutmeg for $5 at Walmart. If you were to isolate trimyristin in lab and sell it on the black market for $50 a gram, how many ounces of pure nutmeg would you have to purchase for total revenue of $1000 (not including original cost of nutmeg)? What would your net profit be (after taking into account the cost of nutmeg)?
Possibly useful information:
My experimental % oil in nutmeg was 30.6%
My experimental % trimyristin in nutmeg oil was 91.8%.
Explanation / Answer
Ans. Step 1: Let assumed that you begin with 100.0 g nutmeg.
Mass of oil obtained = 30.6 % of mass of nutmeg = 30.6 % of 100.0 g = 30.6 g
Mass of trimyristin in 30.6 g nutmeg oil = 91.8 % of nutmeg oil
= 91.8 % of 30.6 g
= 28.0908 g
Therefore, 100.0 g nutmeg yields 28.0908 g trimyristin.
Step 2: Rate of nutmeg = $5/ 2 oz
= $5 / (2 x 28.3495 g) ; 1 oz = 28.3495 g
= $ 0.17637/ g
Cost of purchasing 100 g nutmeg = 100 g x rate of nutmeg
= 100 g x ($ 0.17637/ g)
= $ 17.637
Income from selling 28.0908 g trimyristin (from 100 g nutmeg) =
= 28.0908 g x (selling rate of trimyristin)
= 28.0908 g x ($50/ g)
= $1404.54
Profit from 100 g nutmeg = $1404.54 (selling price) - $17.637 (purchase price)
= $1386.903
Therefore, 100 g nutmeg gives the profit of $1386.903.
Step 3: Amount of nutmeg required for revenue (profit) of $1000 =
$1000 / Profit per 100 g nutmeg
= $1000 / ($1386.903 / 100 g)
= 72.103 g
= (72.103 / 28.3495) oz
= 2.543 oz
Cost of 2.543 oz nutmeg = 2.543 oz x ($5/ 2 oz)
= $ 6.358
Profit from 2.543 oz nutmeg = $1000
Net profit = (profit / purchase cost) x 100
= ($1000 / $6.358) x 100
= 15728.22 %
Note: Net profit is also $1000 per 2.543 oz nutmeg bought for $6.358.
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