A 30-second commercial during this year’s Super Bowl costs $4.5 million.
B) Doritos is running 2 thirty-second commercials. A 16-ounce party-size bag of Doritos costs $3.98. If after paying the production costs of making and packaging this snack the company earns $1.80 profit per bag, how many bags must be sold to make back the money spent on their Super Bowl commercials? Explain how you solved this problem.
(2 * 4,500,000) / 1.8 = ?
5000000
Right
5 million bags
To solve this problem, we need to calculate the number of bags that need to be sold in order to make back the money spent on the Super Bowl commercials.
First, let's find the total cost of the commercials.
Since each 30-second commercial costs $4.5 million, and Doritos is running 2 commercials, the total cost of the commercials would be:
Total cost of commercials = 2 commercials * $4.5 million/commercial
Total cost of commercials = $9 million
Next, let's calculate the profit per bag of Doritos.
Given that the company earns $1.80 profit per bag, we can subtract this from the cost per bag to find the manufacturing and packaging costs.
Manufacturing and packaging costs per bag = Price per bag - Profit per bag
Manufacturing and packaging costs per bag = $3.98 - $1.80
Manufacturing and packaging costs per bag = $2.18
Now, to determine how many bags need to be sold to make back the money spent on the commercials, we divide the total cost of commercials by the profit per bag:
Number of bags to be sold = Total cost of commercials / Manufacturing and packaging costs per bag
Number of bags to be sold = $9 million / $2.18
Calculating this division, we find that:
Number of bags to be sold ≈ 4,128,440
Therefore, approximately 4,128,440 bags of Doritos must be sold to make back the money spent on their Super Bowl commercials.