Question

you want to sell 1/lb jars of mixed peanuts and cashews for five dollars . you paid three dollars per pound for peanuts and six dollars per pound of cashews . you plan to combine four parts peanuts and one part cashews to make your mix . you have spent $70 on materials to get started . how many jars must you sell to break even ?

Answer 1

To calculate the number of jars you need to sell to break even, we can use the following formula:

(Cost of materials + Cost of ingredients per jar) / Price per jar = Number of jars needed to break even

We know that the cost of materials is $70, the cost of ingredients per jar is $18 ( $12 for peanuts + $6 for cashews) and the price per jar is $5.

Plugging in these values into the formula we get:

($70 + $18) / $5 = (88/5) = 17.6 jars

So, you need to sell at least 17.6 jars to break even.

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Cost of materials / (Price per jar - Cost of ingredients per jar) = Number of jars needed to break even

We know that the cost of materials is $70, the cost of ingredients per jar is $18 ( $12 for peanuts + $6 for cashews) and the price per jar is $5.

Plugging in these values into the formula we get:

$70 / ($5 - $18) = 70 / -13 = -5.38 jars

It is not possible to sell -5.38 jars, which means you are making a loss. This indicates that your cost of materials and ingredients is higher than the price you are selling the jars for. To break even, you will have to lower your costs or increase the price of the jars.