Question

Eric runs a tea shop for exotic teas . Since Eric buys the tea by the Tom , the production costs are $5200 per ton. Eric sells the tea leaves by the pound and wants a 50% profit . What should the price be for the tea leaves, per pound.

A: $1.30 per pound
B:$3.90 per pound
C:$6.50 per pound
D:$2.60 per pound

Answer 1

Correct answer: B $3.90 per pound

Explanation:

Let's start by calculating Eric's total cost per pound of tea leaves:

Cost per pound = Cost per ton / 2000 (since there are 2000 pounds in a ton)

Cost per pound = $5200 / 2000 = $2.60 per pound

To calculate the selling price per pound that would yield a 50% profit, we need to add 50% of the cost per pound to the cost per pound:

Selling price per pound = Cost per pound + 0.5 * Cost per pound

Selling price per pound = $2.60 + 0.5 * $2.60

Selling price per pound = $2.60 + $1.30

Selling price per pound = $3.90 per pound