Javier is the business manager of his college. In his role, Javier makes a lot of business decisions. Javier is currently considering installing a vending machine in one of the dorm for soft drinks. The machine rents for $200 a month and the electrical use is minimal. Javier can buy soft drinks for $.25 each and plans on charging $.75 each from the vending machine. How many drinks would have to be sold a month to cover the cost of the machine?
A) 400
B) 200
C) 800
D) 267

Question

Quizplus · Accepted Answer

To cover the cost of the machine, Javier needs to make $200 a month. Each drink provides a profit of $0.50 ($0.75 - $0.25). To find out how many drinks need to be sold to make $200, divide the total cost by the profit per drink: $200 / $0.50 = 400 drinks.

Javier Is the Business Manager of His College