Alison's Bakes:

A homemade delight
October 1st, 2014

BUSINESS PLAN:

In my business, Alison's Bakes, I bake many items due to my fondness of food. I will bake banana nut muffins and pecan pumpkin scones that could be eaten as a treat on a nice afternoon.

BUSINESS PLAN: RESTRICTIONS

I will not able able to make more than 100 banana nut muffins per month and 200 hundred pecan pumpkin scones per month, but no more than 500 together. In the beginning of my business I will not be able to afford to spend more than $200 per month.

BUSINESS PLAN: COSTS & PROFITS

The banana nut muffins will cost $1.00 per one to produce and the pecan pumpkin scones will cost $2.00 per one to produce.

I will be selling the banana nut muffins for $0.50 per one and the pecan pumpkin scones $1.00 per one.

RESTRICTIONS

b= # of banana nut muffins, p= # of pecan pumpkin scones

b≥0

p≥0

100b+200p≤200

100b+200p≥500

PROFITS

The profits of my products will be the money made from them minus production costs .

b= # of banana nut muffins, p= # of pecan pumpkin scones

Cost= $0.50b+$2.00p

Profit=sell-cost

P=($1.00b+$2.00p)-($0.50b+$1.00p)

or P=$0.50b+$1.00p

MAXIMIZED PROFITS

(0,0) P=$0.50(0)+$1.00(0)=$0

(100,0) P=$0.50(100)+$1.00(0)=$50

(100,50) P=$0.50(100)+$1.00(50)=$100

(0,100) P=$0.50(0)+$1.00(100)=$100

I will maximize my profits if I bake 50 banana nut muffins per month and 100 pecan pumpkin scones per month.

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