Chapter 2 Project: HOT! HOT! HOT!
Created by: Christian Gay
Suppose you are the owner of the Sizzlin' Sauce Company. Your company makes two different kinds of sauce, Red Hot Sauce and Scorchin' Hot Sauce.
This graphic below highlights the inequalities in a graph provided by the website desmos.com shows a better view towards the income of the sauces.
As the owner of small successful, you want to minimize costs, maximize profit and keep customers satisfied by filling orders promptly. There are 4 vertices where two lines intersect, at each other and the axes as well on the graph above. Supposing that you make $1.00/pt profit on Scorchin' Hot Sauce and $1.20/pt profit on Red Hot Sauce.
These calculations state that using 75 pints of Scorchin' Hot Sauce and 150 pints of Red Hot Sauce for the most profit of $255.00.
If you visited a local supermarket, for example Food Lion the prices for your ingredients will be:
In total 1 pint of Red Hot Sauce would be $6.51 and 1 pint of Scorchin' Hot Sauce would be $7.74. You should sell 1 pint of Red Hot Sauce for $7.71 and 1 pint of Scorchin' Hot Sauce for $8.74.
You could sell your sauce to supermarket chain, a grocery store and a speciality store ex. Food Lion, Target, Walmart. The supermarket chain would buy 288 pts every 8 weeks, the grocery store would buy 60 pts every 4 weeks and the speciality store would buy 24 pts every week. In order to fill in these orders you should make 75 pints each week.
The profit analysis of producing Sizzlin' Sauce is that your making 75 pints of sauce a week. A pint of Scrochin' Hot Sauce costs $7.74 to make. A pint of Red Hot Sauce costs $6.51 to make. You sell Scrochin' Hot Sauce for $8.74 and you sell Red Hot Sauce $7.71. This brings in the maximum profit of approximately $255.00.
Other expenses may be $80.00 for production facility, $40.00 a week for diesel fuel, $135.00 for utilities, and workers paid $95.00 a week.