# 5th street coffee bar

### gourmet Coffee & cupcakes

Madeline wittman | april 21

5th Street Coffee Bar is a gourmet, homemade, home brewed & locally owned coffee bar. My restaurant would be a small cafe with a calm atmosphere for dates & studying. I would produce coffee by the cup and cupcakes for customers to purchase.

Cost of coffee/cup = $2

Cost per cupcake = $1

Explanation: Coffee beans cost 24 dollars a bag (since we are using all natural and organic beans) Each bag will produce 12 cups of coffee. The materials needed to produce one batch of 12 cupcakes is $12.

Profit/cup of coffee = $4

Profit/cupcake = $4

Explanation: I will sell one cup of coffee for $4 because all coffee cups will be large, and that price will be slightly cheaper than my competitors. The cupcakes will be $4 each, due to the fact that they are gourmet and all natural.

x__<__300

y__<__250

x__>__0

y__>__0

2x+1y__<__1000

2x__<__20000

1y__<__20000

Restrictions: I cannot have an x or y value of 0 because I have to have produce both products and find a reasonable balance between production of the two products.

COST: 2x+y

SELL: 4x+4y

PROFIT=2x+3y

Explanation: The profit will be a good balance between the two products so that each customer will be permitted to purchase an even amount of each products.

(300, 400)

600+1200=1800

(300, 250)

600+750=1350

(375, 250)

750+750=1500

Solution: I will maximize my daily profit if I produce 375 cups of coffee & 250 cupcakes.

Explanation: These amounts will allow maximum products because out of the three ordered pairs, this point produces the highest value.