Purple: Spring Clothing Line
In my business, Purple, I will design and make dresses as well as shoes. These dresses and shoes will be designed for the Spring but can be worn any season. I will sell the dresses individually as well as pairs of shoes individually.
Business Plan: Restrictions
I won't be able to produce more than 50 dresses a month and no more than 25 pairs of shoes each month. In my starting pup phase I can't spend more than $900 each month. I have $10,000 to spend and can't use more than 65% on one product.
Business Plan: Costs & Selling Prices
Each dress with cost $25 dollars to produce and each pair of shoes will cost $30 dollars to produce.
I can sell the dresses for $45 each and $50 for each pair of shoes.
Restrictions: Systems of Inequalities
x= # of dresses; y= # of pairs of shoes each month
Business Plan: Profits
My profits will be the money made at my selling price minus the costs.
x= # of dresses; y= # of pair of shoes
Profit= sell - cost
P= (45x+50y) - (25x-30y) OR
Profit = $20x + $20y
(0,25) P = 20(0) + 20(25) = $500
(6,25) P = 20(6) + 20(25) = $620
(36,0) P = 20(36) + 20(0) = $720
I will maximize my profits each month if I produce 36 dresses and 0 pairs of shoes.