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

Accepted Solution

We know that:Profit = Revenue - CostLet us say x number of candies are made per week.Finding Cost per week:Cost of making 1 bar = 0.15Cost of making x bars = 0.15xFixed rate of making candies per week = 600Total cost of making x candies per week = 600 + 0.15xNow let us find Revenue:Selling price of each bar = 1.50Selling price of x bars = 1.50xNow we have to find profit,Profit = Revenue - CostIn order to have profit Revenue - Cost >0So plugging values of revenue and cost to get number of candies,[tex] 1.50x-(0.15x+600)>0 [/tex][tex] 1.50x-0.15x-600>0 [/tex][tex] 1.35x-600>0 [/tex][tex] 1.35x>600 [/tex]x>444.44Rounding offx>444Answer: The company must sell greater than 444 candies in order to make profit.