Chocolate Machine

John is an owner of a chocolate shop. He buys a chocolate-making machine for $400.

If he makes one chocolate bar for $3 and sells (each chocolate bar) for $8, what is the minimum amount of chocolate bars he has to sell to not be at a loss of money?


The answer is 80.

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6 solutions

X X
Nov 25, 2018

He makes $8-$3=$5 per chocolate bar, so he has to sell $400/$5=80 chocolate bars to not be at a loss of money.

James Browner
Nov 27, 2018

For each chocolate bar he sells for $8, he is at a $3 loss due to manufacturing costs. So he gains 8-3 = $5 per chocolate bar. TO regain the money he spent on the machine(which was $400), he needs to sell 400/5 = 80 chocolate bars.

This is a simple way of thinking about marketing and business

'break even' point.

A Former Brilliant Member - 1 year, 3 months ago
Lâm Lê
Sep 5, 2020

Let's make a variable ( m m ) and set it to 0 0 (his beginning money). Because the chocolate-making machine costs $ 400 \$400 , m = 400 m =-400 . He gets $ 8 \$8 for selling one bar but needs $ 3 \$3 to make that bar so his profit is $ 8 $ 3 = $ 5 b a r \frac{\$8-\$3=\$5}{bar} . We can see that the profit and the number of bars have a 5 : 1 5:1 correspondence. Because m = 400 m=-400 , We crank the profit up to 400 400 (to set m m to a non-negative number(so he doesn't lose any money overall)). Since the profit and the number of bars have a 5 : 1 5:1 correspondence, the answer is 400 : 400 ÷ 5 = 80 400:400÷5=\boxed{80}

B D
Jul 4, 2019

He has a profit of 8-3=5$ per chocolate bar. 400/5=80 chocolate bars to be not t at loss of money.

Mr. India
Dec 2, 2018

For every chocolate he earns a profit of $5 ($8-$3).

As he had invested $400 for machine, he would need to sell $400/$5 chocolates

i.e 80 chocolates

Let n n be the number of chocolate {he makes or sells}

We know that initially, he pays $ 400 \boxed{ \$400}

400 + 3 n > 8 n 400 > 5 n n < 80 \therefore400 + 3n > 8n \\ 400 > 5n \\ \color{#3D99F6} n < \boxed{ 80 }

400=5X X=80 It doesn't make sense punt in accounting even what he spends to produce the chocolate... That's why you need to calculate just the profit he gets from it. If he produced 80 chocolates he will earn indeed: 640 dollars gross Which would be then equal to 640-(80*3)=400

A Former Brilliant Member - 11 months, 4 weeks ago

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