Party trays which cost \( \$ 14.00 \) to make not including labor are sold for \( \$ 35.00 \). if two people work 8 -hour shifts making the trays at \( \$ 7.00 \) per hour, how many trays must be sold to cover all costs including labor?
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Mind Expander
First, let's calculate the labor costs. With two people working 8-hour shifts at \( \$ 7.00 \) per hour, the total labor cost for one shift (16 hours) is \( 2 \times 8 \times 7 = \$ 112.00 \). Now, adding the cost to make one party tray, which is \( \$ 14.00 \), to the labor cost gives a total cost of \( \$ 112.00 + \$ 14.00 = \$ 126.00 \) for one tray. To find the number of trays that need to be sold to cover costs, we first determine the profit per tray sold. Selling each tray for \( \$ 35.00 \), the profit on one tray is \( 35.00 - 14.00 = \$ 21.00 \). Now, to cover \( \$ 126.00 \) in costs, you need to sell: \[ \frac{126}{21} = 6 \text{ trays}. \] So, you must sell 6 trays to cover all costs including labor!