Question

Jeremy opens a chocolate shop in the city. He pays $1,500 a month for rent and maintenance of the shop. The price of raw materials and manufacturing the chocolates is $6,000 a month. He sells the chocolates individually and in boxes of a dozen. Jeremy understands that his business needs a little time to become a success and decides that he wants to build a customer base initially. He is happy to break even for the first year. After a year, Jeremy prices his chocolates at $3 apiece. He offers a discount of 10% on boxes of chocolate to promote the sale of boxes. How many boxes of chocolate would he have to sell to recover the cost of running the business this year per month? (Assume that he sells no individual chocolates.)
A. 188 boxes
B. 208 boxes
C. 226 boxes
D. 232 boxes

Answer 1

1500 per month rent + 6000 per month manufacturing and raw materials....so he pays a total of (6000 + 1500) = 7500 per month

after a year, hr prices his chocolates at $ 3 a piece....there are 12 pieces in each box....so each box cost (3 * 12) = $ 36......but he offers a discount of 10%....so ur actually paying 90%....0.9(36) = 32.40 per box

7500 = 32.40x
7500 / 32.40 = x
231.48 = x....so he would have to sell 232 boxes to break even <=