Question

Which of the following is the least profitable investment for a candy shop that earns $1 profit per pound of candy?

Worker at $10 per hour, producing eight pounds of candy per hour
Worker at $12 per hour, producing 16 pounds of candy per hour
Machine with $5 per hour operating cost, producing 10 pounds of candy per hour
Machine with $8 per hour operating cost, producing 14 pounds of candy per hour

Answer 1

Option 1: profit per hour = 8(1) - 10 = 8 - 10 = $(-2)
Option 2: profit per hour = 16(1) - 12 = 16 - 12 = $4
Option 3: profit per hour = 10(1) - 5 = 10 - 5 = $5
Option 4: profit per hour = 14(1) - 8 = 14 - 8 = $6

Therefore option 1 is the least profitable investment.