Question

A company sells Apple Cherry mix.They make large batches of the mix that can be used to fill 250 bags each. Determine how many pounds of each ingredient should be used to make one batch of Apple Cherry mix.Then decide how much the company should charge for each bag of Apple Cherry mix, and explain how you made your decision.
Important Facts:
Ingredients in Apple cherry mix (1bag)
.3/4 pound of dried apples
.1/2 pound of dried cherries
.1/4 pound of walnuts

Cost of ingredients:
.dried apples:$2.80 per pound
.dried cherries:$4.48 per pound
.walnuts:$3.96 per pound

Answer 1

Calculating the number of kg of each ingredient required per batch is nothing more than multiplying the number of kg per bag times 250. But the information given is woefully inadequate for answering the second part of the question. All you know is the cost of the ingredients and nothing about the fixed costs of running the factory, nor the company's G&A, nor the desired profit margin. If they sell just for the cost of the ingredients, they would go broke in a month. 

John
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