Sugar Shack

By: Alli Wilmes

April 21st 2015

Business Description

My business will make regular and jumbo cupcakes. The regular cupcakes will be a standard size cupcake and come in vanilla or chocolate cake with either vanilla or chocolate icing and various toppings. The jumbo cupcakes will be jumbo size and come in vanilla or chocolate cake and be topped with chocolate, vanilla, cream cheese, cookies and cream, and peanut butter icing and various toppings.

Restrictions and Costs

The regular cupcakes will cost $1.50 to make and I will be able to make 1,500 regular cupcakes a month. I will charge $3.50 for a regular size cupcake. The jumbo cupcakes cost $3 to make and I will be able to make 600 jumbo cupcakes a month. I will charge $6 for a jumbo size cupcakes.  In the beginning I do not want to spend more than $800 a month. I have $10,000 to spend and cannot spend more than 75% on one of the products.

x = number of regular cupcakes                  y = number of jumbo cupcakes

x > 0 , x < 1,500

y > 0 , y < 600

1.50 x + 3 y < 800

1.50 x < 7500

3 y < 7500

Cost = 1.50 x + 3 y

Sell  = 3.50 x + 6 y

Profit = Sell - Cost

* P = 2 x + 3 y

Maximum Profit

Profit = $2 x + $3 y

(0, 266) P = 2 (0) + 3 (266) = $798

(533, 0) P = 2 (533) + 3 (0) = $1066

I will maximize my profit by selling as much as I can of both each month. To make the most profit I should try to sell 533 regular cupcakes and 266 jumbo cupcakes.

Comment Stream