Bagel World

Amos Mwaura
10/2/14
Business Plan for bagel business

Business Plan

My business, Bagel World, brings joy and happiness to the world by selling our top notch bagels. I'll run this out of my college dorm as a part time job and I chose to sell bagels because I mean who doesn't love bagels? I want the bagels I sell to be my two favorite  kinds of bagels, the cream cheese bagel and the pizza bagel.  My mission is for people all over the world to see the true beauty that is bagels.

Monthly Costs

The cost to make a cream cheese bagel is $2 as we have a cheap, yet healthy and efficient type of cream cheese to accompany the bagel, and the cost that Bagel World will be selling the cream cheese bagels for $3.50. The cost to make a pizza bagel is $3 including all the toppings and Bagel World will be selling these bagels for $5.50.

Bagel World has decided to break up our initial funds of 10,000 into 12 months due to this my business will not spend more than $800 a months for both the pizza bagels and the cream cheese bagels.

Cost: 2x+3y

Sell: 3.50x+5.50y

One of the products that will be sold(Pizza Bagel)

Overall Restrictions

To start out with, per month I am only able to make 200 cream cheese bagels and 150 pizza bagels. I will only spend $800 a month to make sure I utilize the 10,000 dollars evenly throughout my first year of buisness. Also I must not spend 3/4 of my product on one product. For example I can't spend more than $600 a month on just cream cheese bagels.

Restriction Inequalities  

x=number of cream cheese bagels y=number of pizza bagels

Number of cream cheese bagels to be sold every month: x≤200

Number of pizza bagels to be sold every month:y≤150

Monthly Costs: 2x+3y≤800

3/4 of profit limit for cream cheese bagels: x≤600

3/4 profit limit for pizza Bagels: y≤600

Common Sense:

x≥0

y≥0

The other product bagel world sells and produces, the cream cheese bagel.

Profit Equations

x=number of cream cheese bagels y=number of pizza bagels

The profit was found by subtracting the costs to make from the selling price

*Per Month and Not Per Year

Sell:3.50x+5.50y

Costs to make: 2x+3y

Profit=Sell-Costs to make

Profit=(3.50x+5.50y)-(2x+3y)

OR

Profit=1.50x+2.50y

Basically my profit is the amount of cream cheese bagels I sell (x1.50) + the amount of pizza bagels I sell (x2.50)

Graph

x≤600 & y≤600 are deselected as they make the graph hard to read

Maximizing Profits

Note: All calculations that result in decimals are rounded down as having a 1/3 of a bagel for example isn't right. Ex: 332.33 rounded to 332

(x,y) P=1.50x+2.50 y

(0,0) P=1.50(0) +2.50(0); P=$0

(0,150) P=1.50(0)+2.50(150); P=$375

(200,0) P=1.50(200) + 2.50(0); P=$300

(200,133) P=1.50(200) + 2.5(133); P=$632

(175,150) P=1.50(175) + 2.50(150); P=$637

According to the calculations the maximum profit I can make is $637 if I sell 175 cream cheese bagels and 150 Pizza Bagels. This profit is superior to if I made $0 (0,0), $375 (0,150), $300(200,0), or $632(200,133).

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