High School

You love macadamia nuts and want to sell them on-campus in 6 oz packages.

- You can buy a 114 lb sack of macadamia nuts for $608.
- You can buy 6 oz packages in bundles of 500 for $50.

1. Ignoring other costs, what price should you charge if you want to make a 40% profit on each package?

2. You want to make $1280 total profit when you sell out your 114 lbs of macadamia nuts. Assuming the same unit cost, what price should you charge?

Answer :

Final answer:

You should charge $2.50 per 6 oz package to make a 40% profit on each package.

To make a total profit of $1280 when selling 114 lbs of Macadamia nuts, you should charge $2.50 per 6 oz package.

Explanation:

In the first scenario, to make a 40% profit on each 6 oz package, you need to calculate the cost of the Macadamia nuts and the cost of packaging. The cost of the Macadamia nuts from the 114 lb sack is $608, and the cost of 6 oz packaging is $50 for 500 packages, which is $0.10 per package. So, the total cost is $608 for nuts + $0.10 for packaging, which is $608.10. To achieve a 40% profit, you need to add 40% of this cost, which is $243.24. Therefore, you should charge $608.10 + $243.24 = $851.34 for 500 packages, and when divided by 500, it equals $2.50 per 6 oz package.

In the second scenario, to make a total profit of $1280 when selling 114 lbs of Macadamia nuts, you can use the same unit cost calculated in the first step, which is $2.50 per 6 oz package.

To calculate the number of packages in 114 lbs, you convert the pounds to ounces (1 lb = 16 oz), so you have 114 lbs * 16 oz/lb = 1824 oz. Divide this by 6 oz per package to get 304 packages. To make a total profit of $1280, you need to charge $1280 divided by 304 packages, which is approximately $4.21 per package.

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