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A Company produces hard bags at 120.00 and sells at 30% profit. a. Find the selling price of a bag. b. If the Company wants to produce bags worth 2,700.00, how much asset will remain C. Suppose the production cost increases by 10% but the selling price remains unchanged, find the profit per bag.

Mathematics

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Answers

4 parts
a

\156.00$

b

75 bags75 \text{ bags}

c(i)

\24.00$

c(ii)

112.5 bags112.5 \text{ bags}

Step-by-step solution

8 steps

Here's the solution to the problem:

Part a· 2 steps

Find the selling price of a bag.

  1. Calculate the profit amount per bag.

    The cost price is 120.00 and the profit percentage is 30%. $$ \text{Profit amount} = 30\% \times \120.00 = \frac{30}{100} \times $120.00 = $36.00 $$

  2. Calculate the selling price per bag.

    Selling price=Cost price+Profit amount=$120.00+$36.00=$156.00\text{Selling price} = \text{Cost price} + \text{Profit amount} = \$120.00 + \$36.00 = \boxed{\$156.00}

Part b

75 bags75 \text{ bags}

If the company wants to produce more a total profit of $2,700.00, how many bags must be sold.

  1. Determine the profit per bag.

    From part (a), the profit per bag is $36.00.

  2. Calculate the number of bags to be sold.

    Number of bags=Total desired profitProfit per bag=$2,700.00$36.00=75 bags\text{Number of bags} = \frac{\text{Total desired profit}}{\text{Profit per bag}} = \frac{\$2,700.00}{\$36.00} = \boxed{75 \text{ bags}}

Part c(i)

\24.00$

new profit per bag

Suppose the production cost increases by 10% but the selling price remains unchanged, find the

  1. Calculate the new production cost per bag.

    The original cost is 120.00 and it increases by 10%. $$ \text{New cost price} = \120.00 + (10% \times $120.00) = $120.00 + $12.00 = $132.00 $$

  2. Calculate the new profit per bag.

    The selling price remains unchanged at 156.00 (from part a). $$ \text{New profit per bag} = \text{Selling price} - \text{New cost price} = \156.00 - $132.00 = \boxed{$24.00} $$

Part c(ii)

112.5 bags112.5 \text{ bags}

number of bags that must be sold to make a profit of at least $2,700.00

  1. Determine the new profit per bag.

    From part (c.i), the new profit per bag is $24.00.

  2. Calculate the number of bags to be sold.

    Number of bags=Total desired profitNew profit per bag=$2,700.00$24.00=112.5 bags\text{Number of bags} = \frac{\text{Total desired profit}}{\text{New profit per bag}} = \frac{\$2,700.00}{\$24.00} = \boxed{112.5 \text{ bags}} Since you cannot sell half a bag, the company must sell 113 bags to make at least $2,700.00 profit.

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