A World Traveler Prepares to Leave the Comforts of Home

Multiple Choice

A world traveler prepares to leave the comforts of home for a back to nature visit to Gilligan's Island,where all transactions are conducted in coconuts and the banking system is completely undeveloped.The traveler can buy cocoanuts for $2 each before the journey.If he fails to bring enough cocoanuts with him and runs out,he must get some cocoanuts flown in at a cost of $5 each.If he finishes his vacation and has leftover cocoanuts he can cash them in when he returns home,but will receive only $1.50 per cocoanut.What is his loss per unit if he overstocks on cocoanuts prior to leaving home?

A) $0.50
B) $1
C) $3.50
D) $4.50