Purple: Spring Clothing Line

Teresa Parra's Home Business

Business Plan

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

x≥0, x≤50

y≥0, y≤25

25x+30y≤900

25x≤6500

30y≤6500

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

Cost= $25x+$30x

Sell= $45x+$50y

Profit= sell - cost

P= (45x+50y) - (25x-30y) OR

P= 20x+20y

Maximize Profits

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.

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