7 [5 points] You and a friend, now business partner, have decided to try and
make money for the holidays by selling mixed nuts. You decide on a
mixture of 50% peanuts, 20% almonds, 15% cashews, and 15% pecans. Bulk
nut prices from the store are: $4.00/lb for peanuts, $6.00/lb for almonds,
$6.00/lb for cashews, $8.00/lb for pecans. You plan to sell the nuts in a
holiday container that costs $3.90. You and your partner agree on selling
price of $25 for a container filled with 2lbs of nuts. Since it's food you must
assemble the product in a food-safe facility. The facility charges $315 for
unlimited access for the one month you will need. Since you and your
partner are owners you will split the profit but will not be compensated for
your time, use of your car, etc.
Calculate the cost per unit.
Image: Ka Yeung/Tinkerbox Studio
What is the breakeven quantity?
If you and your friend each want to make $500 for this effort, how many containers must you sell?