Real-Life Math -- Solution
You must calculate each of the costs separately. To plant and cultivate
the original 5,000 plants:
5,000 x $2 = $10,000
It
cost Medico $10,000 to plant and cultivate the feverfew.
Then calculate
the cost of harvesting. Multiply the number of hours worked by the number
of days.
12 hours per day x 5 days = 60 hours
Multiply
the number of total hours by the hourly wage.
60 hours
x $10 per hour = $600
Multiply the number of people working
by the amount each would get paid for their work.
10 workers
x $600 = $6,000 paid out over 5 days to 10 people
The
total cost to harvest the feverfew is $6,000.
Then, figure the cost
to ship the harvested feverfew to the manufacturing plant. Multiply the cost
per pound by the total number of pounds.
$3.60 per pound
x 930 pounds = $3,348
The cost to ship the feverfew is
$3,348.
Now, figure the total cost per pound to Medico, before manufacturing.
Add the three figures, then divide by the number of pounds.
$10,000
+ $6,000 + $3,348 = $19,348
$19,348 / 930 = $20.80 per pound
The
total cost per pound to plant, harvest, and ship to manufacturing is $20.80.
"Mathematics
is an important skill in any career," says Robin Marles. He is
an associate professor of botany. "Economic mathematics is used to minimize
the environmental impact of native plant product development."