Question

A small coffee distributer spends $7860 per month on business expenses and $4.25 to produce each bag of coffee. It charges $12 for one bag of coffee. How many bags of coffee must the company sell in one month in order for its sales to equal its monthly cost?

Answer 1

1014 bags

Explanation:

Given

`Expenses = \$7860`

`Cost\ Price = \$4.25`

`Selling\ Price = \$12`

Required

Determine the number of bags

Represent the number of bags with n

Cost price of n bags is: $4.25 * n.

Total Expenses is: $7860 + $4.25 * n

Selling Price of n bags is: $12 * n

The equation to calculate n is:

`Total\ Expenses = Selling\ Price`

`7860 + 4.25n = 12n`

Collect Like Terms

`12n - 4.25n = 7860`

`7.75n = 7860`

Solve for n

`n = 7860/7.75`

`n = 1014.19354839`

`n = 1014` approximated