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You are a production manager for a pill manufacturer. You must get the materials for a production run. The order calls for 10,000 pills. The materials to go inside the 10,000 pills cost a total of \$500.00. A box of 5000 empty capsules costs \$100.00. The pills are to be packaged in bottles of 100 capsules each. The bottles cost \$0.50 each. The cost of manufacturing 1000 pills is \$10.00. What should you report to your boss is the cost of each bottle of 100 pills?

Each empty capsule costs \$100/5000 = 0.02. This is \$2.00 per 100 pills.
Each empty pill bottle costs 0.50 each
The contents of each capsule cost \$500/10,000 = 0.05, which amounts to \$5.00 per 100 pills.
The manufacturing cost is \$1.00 per 100 pills

The cost of making a bottle of 100 capsules is therefore
\$2.00 + \$0.50 + \$5.00 + \$1.00 = ?

Check my thinking and verify the numbers.

8.5??

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