# Blair's bakery

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.

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.

• x≥0,x≤1500
• y≥0,y≤2500
• 1.50x + 1.00y≤830
• 1.50x≤7500
• 1.00y≤7500

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

Maximum Profit:

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.