Question

Farmer Jane would like to show a net profit of $1,000 per month. She is growing tomatoes and sells them for $3 per pound. Her variable costs per pound are $1, and she has $700 in fixed cost. How many pounds does she need to sell?

Answer 1

850

Explanation:

Each pound of tomatoes costs one dollar to produce, and sells for three dollars. That's a net profit of 2 dollars per pound of tomatoes.

We need a profit of 1000 dollars, and to pay the 700 dollars in operating costs, for a total of 1700 dollars needed.

So 1700 dollars divided by 2 dollars per pound of tomatoes comes out to 850 pounds of tomatoes.