Chapter 6.4, Problem 28PPE

To determine

To calculate:For breakdown number of jars must be sold.

Answer to Problem 28PPE

  $50$ jars.

Explanation of Solution

Calculation:

Let’s say you have to sell $x$ number of jars to break even.

Cost of peanuts is $\$3$ per pond and cost of cashew is $\$6$ per pound. Now, the jar contains, $4$ parts peanuts and $1$ part cashew.

Therefore, cost price of jar is, $\frac{4}{5}(3)+\frac{1}{5}(6)=\$3.6$

Plus $\$70$ is spent on materials to get started.

Now, selling price is $\$5$

Now, for the break-even selling price must be equal to total cost price,

  $\therefore 3.6x+70=5x$

  $\therefore x=50$