profit when unfit is not $270 - $150 - $150, its simply -$150. When the basket is unfit for sale, it goes unsold. Which means the man is out $150 (as it says i

profit when unfit is not $270 - $150 - $150, its simply -$150. When the basket is unfit for sale, it goes unsold. Which means the man is out $150 (as it says in the question). The $270, sale price, does not even enter the picture as the basked it unsold. thus average profit = 1/12 * -150 + 11/12 * 120 = 97.5