Hot! Hot! Hot! Sauces!
You are the owner of a Sizzlin Sauce company. Your company makes 2 different types of sauce, Red Hot Sauce and Scorchin Hot Sauce.
Below are the ingredients to the sauces:
Being the owner of a small successful business is not very simple. Your main goal is to minimize price and maximize profit, also while maintaining customer satisfaction.
To be able to fill all of your orders you have bought 1050 Green Peppers as well as 1200 Hot Chili Peppers.
Now, suppose you make $1.20 profit per pint of Red Hot Sauce and $1.00 profit per pint of Scorchin Hot Sauce. Determine how much sauce you should make and sell to maximize your profit. What is your maximum profit?
You should use approximately 150 pints of Red Hot Sauce and 75 pints of Scorchin Hot Sauce.
Your maximum profit should be around $255.00
Your local grocery store prices for each ingredient:
Tomato Sauce with Onions: $1.60
Green Peppers: $0.69
Hot Chili Peppers: $0.79
1 Pint of Red Hot Sauce: $8.31
1 Pint of Scorchin Hot Sauce: $10.68
You would sell the Red Hot Sauce for $9.51 per pint and then sell the Scorchin Hot Sauce for $11.88 per pint.
You can sell your sauce to a supermarket chain, a local grocery, and a specialty store. The amount each store buys and how often is listed below.
Supermarket Chain: 288 pints every 8 weeks
Local Grocery Store: 60 pints every 4 weeks
Specialty Store: 24 pints each week
You should produce around 75 pints of sauce each week to meet your customers orders.
You are making around 75 pints of sauce each week. You can make 1 pint of Red Hot Sauce at the cost of $8.31 and 1 pint of Scorchin Hot Sauce at the cost of $10.68. In order to make profit and get the ingredients you can up the price by $1.20 a pint and then sell your sauces. By doing this it makes 1 pint of Red Hot Sauce cost $9.51 and 1 pint of Scorchin Hot Sauce cost $11.88. This makes for a maximum profit of $255.00
By increasing your sale price you can then take care of any other necessary funding if needed.
$100.00 a month
Employee Pay Check:
$65.00 a week