Flour Box Bakery

Shelby Dennis
4/23/15

Business Plan: At my bakery, Flour Box, we will sell baguettes and puff pastries.  They will be made by me (and any employees) and we will sell them for a flat price.

Restrictions: I can only produce 800 baguettes a month at most, and 200 puff pastries at most per month.  I can only spend $600 each month and I cannot spend more than 75% on any one product.

Costs and Selling Prices:  The baguettes cost $0.30 to make and I will sell them for $1.20.  The puff pastries cost $2.00 to make and I will be selling them for $4.50.

Restriction equations: x= # of baguettes, y= # of pastries

0≤x≤800

0≤y≤200

.3x+2y≤600

.3x≤7500

2y≤7500

Profits: Selling price- cost

cost=.3x+2y

sell=1.2x+4.5y

Profit= (1.2x+4.5y)-(.3x+2y)

P=.9x+2.5y

Maximize Profits:

Profit=.9x+2.5y

(0,200) P=.9(0)+2.5(200)=500

(666.7,200) P=.9(666)+2.5(200)=1,099.4

(800,180) P=.9(800)+2.5(180)=1,170

(800,0) P=.9(800)+2.5(0)=720

My profits will be maximized if i make 800 baguettes a month and 180 puff pastries a month.

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