Rebecca Blair- 4/23/15
In my business, Blair's Bakery, I will bake fresh gourmet pastries to sell to the community on a daily basis. These products can be used for events throughout the community or as a tasty treat in the middle of the day. My two main products will be cupcakes and cookies. These cupcakes and cookies will be sold on an individual basis.
Business Plan: Restrictions
I will not be able to produce more than 1500 cupcakes per month and no more than 2500 cookies each month. In the early stage of my business I cannot spend more than $830 each month. I currently have $10,000 to spend and I will not be able to spend more than 75% of that money on one product.
Business Plan: Cost and Selling Prices
One cupcake will cost $1.50 to produce, while one cookie will cost $1.00 to produce. I know I can sell each individual cupcake for $3.50 and each individual cookie for $2.50.
Restrictions: System of inequalities
x will equal the number of fresh gourmet cupcakes and y will equal the number of fresh gourmet cookies I can sell each month to meet the restrictions above.
- 1.50x + 1.00y≤830
Business Plan: Profits
My profits will be the money made from the cookies and cupcakes at my selling price minus my production cost.
x will equal the number of cupcakes and y will equal the number of cookies.
- Cost= $1.50x + $1.00y
- Sell= $3.50x + $2.50y
- Profit= $2x + $1.50y
Profit= $2x + $1.50y
(0,830) P= 2(0) + 1.50 (830)= $1245
(553,0) P= 2(553) + 1.50(0)= $1106
- I will maximize my profits each month if I sell 0 cupcakes and 830 cookies.