Question

Sarah Sandoval is a coffee farmer trying to decide how many tons of coffee to produce. She can sell each ton of coffee for $2,400. The cost of producing her first ton of coffee is $600, and the second ton costs $1,200. Each additional ton of coffee costs $600 more to produce. How many tons of coffee should Sarah produce, and what is the total cost of her coffee production

Answer 1

Answer:

Sarah should produce four tons of coffee and total cost for four ton is $6,000.

Step-by-step explanation:

According to the scenario, calculation of the given data are as follows,

Selling price per ton = $2,400

Cost of production is increasing by $600 for each ton.

So, Cost of production first ton = $600

Cost of production for second ton = $600 + $600 = $1,200

Similarly, Cost of production for third ton = $1,200 + $600 = 1,800

Cost of production of fourth ton = $1,800 + $600 = $2,400

Here, Sarah can produce coffee till selling price = cost of production.

As, cost of production of four ton = selling price, then Sarah can produce only four tons of coffee.

Total cost for four ton coffee = $600 + $1,200 + $1,800 + $2,400

= $6,000