Final answer:
Raul needs to sell each of the 16 one-ounce bags of cocaine for $3,000 to achieve a 20% profit on his $40,000 investment, totaling $48,000 in sales.
Step-by-step explanation:
The question involves calculating the profit on the sales of one-pound cocaine divided into one-ounce bags. Since there are 16 ounces in 1 pound, to make a 20% profit on a $40,000 investment, Raul would need to sell his product for a total of $48,000 (which is the original cost plus 20%).
To figure out how many one ounce bags Raul will need to make a 20% profit, we need to determine the cost of each one ounce bag. Since he bought a pound of cocaine for $40,000, which is equivalent to 16 ounces, we can calculate the cost per ounce by dividing the total cost by the total number of ounces. The cost per ounce is $2,500.
To make a 20% profit, he needs to sell each one ounce bag for 20% more than the cost. Therefore, the selling price of each one ounce bag would be $3,000 (20% of $2,500 is $500, which is added to the cost per ounce). To obtain the 20% profit, Raul will need to sell each one ounce bag for $3,000.
Since the total weight of the pound of cocaine is 16 ounces, Raul will need to divide the total weight by the weight of each bag (1 ounce). Therefore, Raul will need to make 16 one ounce bags in order to obtain the 20% profit.
To find out how much each ounce should be sold for to reach the $48,000 target, divide the total desired revenue by the number of ounces in one pound. So, $48,000 divided by 16 is $3,000. Therefore, to make a 20% profit, Raul would need to sell each one-ounce bag for $3,000.