A small fast-food restaurant invests $6000to produce a new food item that will s
ID: 3089711 • Letter: A
Question
A small fast-food restaurant invests $6000to produce a new food item that will sell for $3.49. Each item can be produced for $2.15. (a) How many items must be sold to break even?(Round to the nearest whole number.)items
(b) How many items must be sold to make a profit of $8500? (Round to the nearest whole number.) items (a) How many items must be sold to break even?(Round to the nearest whole number.)
items
(b) How many items must be sold to make a profit of $8500? (Round to the nearest whole number.) items
Explanation / Answer
A) you only make a profit of $3.49-$2.15 = $1.34 on each food item sold if you want to break even you have to sell $6000/$1.34 = 4477.6 round that up since you wont be selling .6 of a food item, so4478 and that's just to get your money back from the investment. B) To make a profit of $8500, divide that by the amount by theprofit from each food item $8500/$1.34 = 6343.3 round up again to get, 6344 additional food items needed to besold now add the two amounts of items needed to be sold to get yourfinal value, since you paid $6000 for the investment 6334+4478 = 10822 items needed to be sold to gain a profit of$8500