Answer:
Champs Sports Bar will incur equal total costs if Pancho can hold annual shipping price per crate at $6
Explanation:
Current consumption = 6000 per year
Byron's Charge
Cost of 1 bottle = $9.25
1 crate contains 500 bottles
6000 bottles would be contained in 12 crates (6000 ÷ 500 = 12)
Cost of 1 crate = $9.25 × 500 = $4625
Shipping price per crate = $5
Cost of 1 crate + shipping price per crate = $4625 + $5 = $4630
Total cost to ship 12 crates (6000 bottles) = 12 × $4630 = $55560
Pancho's charge
Cost of 1 bottle = $9.20
I crate contains 100 bottles
6000 bottles would be contained in 60 crates (6000 ÷ 100 = 60)
Cost of 1 crate = $9.20 × 100 = $920
Let the shipping price per crate be y
Cost of 1 crate + shipping price per crate = ($920 + y)
Total cost to ship 60 crates = 60($920 + y)
To solve for y, equate the two total costs
60($920 + y) = $55560
Divide both sides by 60
$920 + y = $926
y = $926 - $920 = $6
Champs Sports Bar will incur equal total costs if Pancho can hold annual shipping price per crate at $6.
