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valentina_108 [34]
3 years ago
13

A candy store sells boxes of candy containing caramels and cremes. Each box sells for $12.50 and hold 30 pieces of candy (all pi

eces are the same size). If the caramels cost $0.25 to produce and the cremes cost $0.45 to produce, how many of each should be in the box to yield a profit of $3 dollars?
Business
1 answer:
evablogger [386]3 years ago
6 0

Answer:

Number of caramels = 20

number cremes = 30 - 20 = 10

Explanation:

Data provided in the question:

Selling cost of each box = $12.50

Number of pieces of candies held in a box = 30

Cost of producing caramel = $0.25

Cost of producing cremes = $0.45

Now,

let the number of caramels be 'x'

Thus,

Number of cremes = 30 - x

Profit = Selling price - Cost

3 = $12.50 - [ 0.25x + 0.45(30 - x) ]

or

[ 0.25x + 0.45(30 - x) ] = 12.50 - 3

or

0.25x + 13.5 - 0.45x = 9.50

or

-0.20x = 9.50 - 13.5

or

-0.20x = - 4

or

x = 20

Hence,

Number of caramels = 20

number cremes = 30 - 20 = 10

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<h2>                   Differential Analysis</h2>

                                              alternative 1      alternative 2     differential

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Lease                                    -$150,000                 $0              $150,000

(5 years)    

Income / loss                       -$150,000           -$139,600           <u>$10,400</u>

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

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