Question

Calvin works at a facility which processes apples. It costs the facility $0.68 to make either a jar of applesauce or a bottle of apple juice. Due to the nature of the process and contractual agreements, Calvin’s facility must make and sell three jars of applesauce for every two bottles of apple juice. A jar of applesauce sells for $2.20, and a bottle of apple juice sells for $3.15. If the facility has annual overhead costs of $368,500, not including production costs, how many bottle of apple juice will the facility have sold when it breaks even every year? Round to the nearest whole bottle, if necessary.

A. 38,789
B.77,579
C.116,368
D.167,500

Answer 1

The answer is B 77,579

Explanation:

Answer 2

The correct answer is option B

Explanation:

For every 2 bottles of apple juice , 3 bottles of applesauce are sold

Let the number of bottles of apple sold be "X"

The number of applesauce bottles sold will be
`(3)/(2) X\\`

Total cost price of producing applesauce and apple bottle will be

`((3)/(2) X + X) * 0.68\\`

Total selling price of producing applesauce and apple bottle will be

`((3)/(2) X) * 2.20 + X * 3.15\\`

Cost of overhead
`= (selling cost ) - (production cost)\\`

`(((3)/(2) X) * 2.20 + X * 3.15) - (((3)/(2) X + X) * 0.68) = 368, 500\\6.45 X -1.7 X = 368500\\X = 77579`