Sarah Sandoval is a coffee farmer trying to decide how many tons of coffee to produce. She can sell each ton of coffee for $2,400. The cost of producing her first ton of coffee is $600, and the second ton costs $1,200. Each additional ton of coffee costs $600 more to produce. How many tons of coffee should Sarah produce, and what is the total cost of her coffee production

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Answer:

Sarah should produce four tons of coffee and total cost for four ton is $6,000.

Step-by-step explanation:

According to the scenario, calculation of the given data are as follows,

Selling price per ton = $2,400

Cost of production is increasing by $600 for each ton.

So, Cost of production first ton = $600

Cost of production for second ton = $600 + $600 = $1,200

Similarly, Cost of production for third ton = $1,200 + $600 = 1,800

Cost of production of fourth ton = $1,800 + $600 = $2,400

Here, Sarah can produce coffee till selling price = cost of production.

As, cost of production of four ton = selling price, then Sarah can produce only four tons of coffee.

Total cost for four ton coffee = $600 + $1,200 + $1,800 + $2,400

= $6,000

Sarah can produce 4 tons of coffee and the total cost of the production is $6000 and this can be determined by using the arithmetic operations.

Given :

  • Sarah Sandoval is a coffee farmer trying to decide how many tons of coffee to produce.
  • She can sell each ton of coffee for $2,400.
  • The cost of producing her first ton of coffee is $600, and the second ton costs $1,200.
  • Each additional ton of coffee costs $600 more to produce.

The following steps can be used in order to determine the total amount of coffee (in tons) should Sarah produce and the total cost of her coffee production:

Step 1 - Remember that Sarah can produce coffee unitil selling price is equal to the cost of production.

Step 2 - According to the given data, each additional ton of coffee costs $600 more to produce.

Step 3 - From the above steps, it can be concluded that Sarah can produce 4 tons of coffee because the cost of 4 tons of coffee is equal to the selling price.

[tex]600\times 4 = $2400[/tex]

Step 4 - So, the total cost of producing four tons of coffee is:

Total Cost = 600+ 1200 + 1800 + 2400

Total Cost = $6000

For more information, refer to the link given below:

https://brainly.com/question/1957976