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My Business

Coffee Beans is a small coffee shop that is perfect for any coffee lover. It opens early in the morning so that work goers can get their coffee before they head out for work. The coffee is brewed fresh everyday. The products i will provide is regular hot coffee and iced coffee.

Restrictions

On a monthly basis I can't produce any more than 1500 hot coffees and 600 iced coffees. I cannot spend more than \$5000 a month.

Restriction Equations

x= # of hot coffees produced, y= # of iced coffees produced

x>0

x<1500

y>0

y<600

5000<1.50x + 2y

My Costs

The cost to make a hot coffee is \$1.50 and the cost to purchase it is \$2.00.

The cost to make iced coffee is \$2.00 and the cost to purchase it is \$3.00

Profits

Profit= sell- cost

Cost=1.50x + 2y

Sell= 2x + 3y

Profit = .5x + y

Maximum Profit

(0,600) P= .5(0) + 600 = \$600

(0,0) P= .5(0) + 0 = \$0

(1500, 0) P= .5(1500) + 0 = \$750

(1500,600) P= .5(1500) + 600 = \$1350

I will maximize my profit by making 1500 hot coffees a month and 600 iced coffees a month.