Brenya Estate produces a high quality tea branded Super by blending three types of tea coded A, B and C in the ration 1½ : 5 : 1. Originally Type A tea costs GHS 1,600 type B costs GHS 800 and type C costs GHS 1,700 per Kg to produce. Brenya Tea Estate packs Super tea in packets of 825g each. Blending and packing costs are 40 per Kg. Determine the production cost for a packet of Super tea.

Since Brenya Estate produces a high quality tea branded Super by blending three types of tea coded A, B and C in the ration 1½ : 5 : 1, and originally Type A tea costs GHS 1,600 type B costs GHS 800 and type C costs GHS 1,700 per Kg to produce, and Brenya Tea Estate packs Super tea in packets of 825g each. Blending and packing costs are 40 per Kg, to determine the production cost for a packet of Super tea, the following calculation must be made:

Blending ad packing costs = 40 x 0.825 = 33
1.5 + 5 + 1 = 7.5
7.5 = 100
1.5 = X
1.5 x 100 / 7.5 = 20
7.5 = 100
5 = X
5 x 100 / 7.5 = 66.66
100 - 66.66 - 20 = 13.33
33 + (1600 x 0.2 x 0.825) + (800 x 0.6666 x 0.825) + (1700 x 0.1333 x 0.825) = X
33 + 264 + 439.96 + 186.95 = X
923.91 = X

Therefore, the production cost for a packet of Super tea is $923.91.

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