Question

Which of the following is the most profitable investment for a candy shop that earns $1 profit per pound of candy?

Answer 1

The most profitable investment for a candy shop that earns $1 profit per pound of candy is "Machine with $8 per hour operating cost, producing 14 pounds of candy per hour".

Answer 2

Answer:

Option 4). Machine with $8 per hour operating cost, producing 14 pounds of candy per hour.

Step-by-step explanation:

We have to find the most profitable investment for a candy shop that earns $1 per pound of candy.

We will take up each option one by one.

Option 1).

Producing eight pounds of candy per hours means profit = $1×8 = $8

But workers take $10 per hours so expenditure = $8 - $10 = -$2

There is a loss of $2 in this investment.

Option 2).

Production of 16 pounds candy per hour will make the profit = $1 × 16 = $16

But workers take $12 per hour so profit earned = 16 - 12 = $4

Option 3).

Machine produces 10 pound of candy per hour so profit will be = $1 ×10 = $10

Operating cost of the machine = $5 per hour

So profit generated = profit - Operating cost of machine

                                 = 10 - 5 = $5

Option 4).

Profit earned by production of 14 pounds of candy per hour = $1 × 14 = $14

Operating cost of the machine = $8 per hour

Therefore, Total profit per hour = 14 - 8 = $6

Finally we can say that the maximum profit will be generated in option 4.

Therefore, Option 4) will be the best option to invest.