Question

Brenya Estate produces a high quality tea branded Super by blending three types of tea coded A, B and C in the ration 1: 5:1. Originally Type A tea costs GHS 1,600 type B costs GHS 800 and type C costs GHS 1,700 per kg to produce. Brenya Tea Estate packs Super tea in packets of 825g each. Blending and packing costs are 40 per kg. Determine the production cost for a packet of Super tea,

Answer 1

Solution :

Cost of 1 kg super tea mixture

$=\frac{1(1600)+5(800)+1(1700)}{1+5+1}$

$=\frac{1600+4000+1700}{7}$

$=\frac{7300}{7}$

= 1042.8

≈ 1043

Include of cost blending and packaging.

So, cost of 1 kg is 1043 + 40 = 1083

Cost of packaging of 825 gram super tea = $\frac{825}{1000} \times 1083$

                                                                     = 893.47