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.
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.
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.
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.