Jeremy opens a chocolate shop in the city. He pays $1,500 a month for rent and maintenance of the shop. The price of raw materials and manufacturing the chocolates is $6,000 a month. He sells the chocolates individually and in boxes of a dozen. Jeremy understands that his business needs a little time to become a success and decides that he wants to build a customer base initially. He is happy to break even for the first year. If Jeremy sells 2,400 individual chocolates and 50 boxes a month, how should he price his chocolates to break even, given the costs? (Assume that the price of a box is the same as the price of 12 individual chocolates.)

Amount of money paid by Jeremy as rent and maintenance of shop per month = $1500

Cost of raw materials and manufacturing per month = $6000

Total cost that Jeremy has to spend per month = (1500 + 6000) dollars

= 7500 dollars

Number of individual chocolates sold = 2400

Number of chocolates sold in boxes = 50 boxes

= (12 * 50) chocolates

= 600 chocolates

Then

Total number of chocolates sold by Jeremy = 2400 + 600

= 3000

Now

Price of each chocolate = 7500/3000 dollars

= 75/30 dollars

= 5/2 dollars

= 2.5 dollars

Price of 600 chocolates = 600 * (5/2) dollars

= 300 * 5 dollars

= 1500 dollars

Price of 12 chocolates = (1500/600) * 12

= 15 * 2

= 30 dollars

Then

We can say that each box of chocolate should be sold at $30. All the loose chocolates should be sold at $2.5 each.