Question

Sweetums finds that the cost of making a certain candy bar .15 per bar and that the fixed rate is 600 per week if each bar sells for 1.50 find the minimum number of candy bars that must be sold in a week for the company to profit

Answer 1

We know that:

Profit = Revenue - Cost

Let us say x number of candies are made per week.

Finding Cost per week:

Cost of making 1 bar = 0.15

Cost of making x bars = 0.15x

Fixed rate of making candies per week = 600

Total cost of making x candies per week = 600 + 0.15x

Now let us find Revenue:

Selling price of each bar = 1.50

Selling price of x bars = 1.50x

Now we have to find profit,

Profit = Revenue - Cost

In order to have profit Revenue - Cost >0

So plugging values of revenue and cost to get number of candies,

`1.50x-(0.15x+600)>0`

`1.50x-0.15x-600>0`

`1.35x-600>0`

`1.35x>600`

x>444.44

Rounding off

x>444

Answer: The company must sell greater than 444 candies in order to make profit.