Sanji buys a lot of health food from a company that charges 3%on each item for shipping. If he purchased a premium membership for $45 a year the shipping would be free

Answer 1

To help Sanji evaluate whether purchasing a premium membership is worth it, we can set up a simple comparison of costs based on his food purchases.

1. Calculate Shipping Costs Without Membership:

   • If Sanji buys items worth \( X \) dollars, the shipping cost without the premium membership would be: \[ \text{Shipping Cost} = 0.03 \times X \]

2. Cost with Membership:

   • With the premium membership, Sanji pays a flat yearly fee of $45, and the shipping is free.

3. Determine the Break-Even Point:

   • We need to find out when the shipping costs without membership equal the membership cost: \[ 0.03 \times X = 45 \]
   • Solving for \( X \): \[ X = \frac{45}{0.03} = 1500 \]

This means that if Sanji spends more than $1500 on health food in a year, it would be more cost-effective for him to buy the premium membership. If he spends less than $1500, he is better off without the membership.