Making a profit

Question

 Students can buy enough candy to fill a bag for $.50 each. They also need $60 to buy bags and ribbons to keep the candy together as well as materials for advertising the sale. They sell each bag of candy for $1.30. How many bags of candy to them to sell in order to start making money .

Answer 1

For the cost of the candy:

Profit per bag sold = revenue - cost = 1.30 - 0.50 = $0.80 per bag

 

Total sales profits is

0.80B - 60  where B represents number of bags sold

 

To make an actual profit we must have the revenue (0.80B) greater than $60:

 

0.80B - 60 > 0 

add 60 to both sides

0.80B > 60

divide both sides by 0.8

B > 60/0.8

B > 75

 

They must sell more than 75 bags to make a profit.

If they sell 75 bags they break exactly even.  More

than 75 will make a profit of $0.80 per bag.