Problem

A laundry can purchase soap containing 30% water for a price of $0.30/kg FOB the soap manu...

A laundry can purchase soap containing 30% water for a price of $0.30/kg FOB the soap manufacturing plant (i.e., at the soap plant before shipping costs, which are owed by the purchaser of the soap). It can also purchase a different grade of soap that contains only 5% water. The freight rate between the soap plant and the laundry is $6.05/100 kg. What is the maximum price the laundry should pay for the 5% soap?

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