Answer:
Option 4). Machine with $8 per hour operating cost, producing 14 pounds of candy per hour.
Explanation:
We have to find the most profitable investment for a candy shop that earns $1 per pound of candy.
We will take up each option one by one.
Option 1).
Producing eight pounds of candy per hours means profit = $1×8 = $8
But workers take $10 per hours so expenditure = $8 - $10 = -$2
There is a loss of $2 in this investment.
Option 2).
Production of 16 pounds candy per hour will make the profit = $1 × 16 = $16
But workers take $12 per hour so profit earned = 16 - 12 = $4
Option 3).
Machine produces 10 pound of candy per hour so profit will be = $1 ×10 = $10
Operating cost of the machine = $5 per hour
So profit generated = profit - Operating cost of machine
= 10 - 5 = $5
Option 4).
Profit earned by production of 14 pounds of candy per hour = $1 × 14 = $14
Operating cost of the machine = $8 per hour
Therefore, Total profit per hour = 14 - 8 = $6
Finally we can say that the maximum profit will be generated in option 4.
Therefore, Option 4) will be the best option to invest.