Question
Jack sells sausages by the pound following his family recipe. It costs him $0.99 to make a pound of sausage. His other operating costs are $4478.70 each month. How much should he charge per pound if he wants to earn a 25% profit each month after expenses and estimates that he will both make and sell 1850 pounds of sausage per month? Jack should charge /lb. Rounded to the nearest hundredth (cents)
Answers
GPT 3.5
To calculate how much Jack should charge per pound, we first need to determine his total costs.
Cost to make 1850 pounds of sausage: $0.99 * 1850 = $1831.50
Total costs (including operating costs): $1831.50 + $4478.70 = $6309.20
To earn a 25% profit on his total costs, Jack needs to markup his sausages by 25%. This means his selling price should be 125% of his total costs.
Selling price per pound = $6309.20 * 1.25 / 1850
Selling price per pound ≈ $4.26
Therefore, Jack should charge $4.26 per pound of sausages to earn a 25% profit each month after expenses and estimates.
Cost to make 1850 pounds of sausage: $0.99 * 1850 = $1831.50
Total costs (including operating costs): $1831.50 + $4478.70 = $6309.20
To earn a 25% profit on his total costs, Jack needs to markup his sausages by 25%. This means his selling price should be 125% of his total costs.
Selling price per pound = $6309.20 * 1.25 / 1850
Selling price per pound ≈ $4.26
Therefore, Jack should charge $4.26 per pound of sausages to earn a 25% profit each month after expenses and estimates.