LoriAnn Oils sells bottled flavorings to cooks for spicing up their cakes, cookies, and candies. A case contains 48 bottles. Variable costs for making a case of peppermint oil equal $15. Fixed costs for each case are $2.75. The company wants to make a 150 percent profit on each case. Distribution costs to send a case to Alaska is $11. If more than three cases are ordered at one time, the price is reduced by 5 percent. What is the total cost for making three cases of peppermint oil?

Question

Quizplus · Accepted Answer

The total cost for making three cases is calculated by adding the variable costs and fixed costs for each case. Variable costs per case are $15, and fixed costs per case are $2.75. Therefore, the total cost for one case is $15 + $2.75 = $17.75. For three cases, the total cost is 3 x $17.75 = $53.25.

LoriAnn Oils Sells Bottled Flavorings to Cooks for Spicing Up