# Sweet Treats: Cookies & Cupcakes

### Lauren Berrett, Advanced Algebra 2, 10/1/2013

Business Plan

## Business Overview

In my business, Sweet Treats, I will make and sell special treats that people of all ages will enjoy. These treats will be perfect for any gathering, party, or social event. These will be made fresh every day and what they look like are up to the customer. The main two products I will be focusing on are cupcakes and cookies.

## Restrictions

On a monthly basis, I won't be able to produce more than 200 cupcakes per month and no more than 270 cookies per month. Currently I can not spend more than $800 per month.

## Restriction Equations

x=# of cookies produced, y=# of cupcakes produced

x ≥ 0, x ≤ 270

y ≥ 0, y ≤ 200

x+2.50y ≤ 800

## Costs & Selling Prices

The cost to make each cookie is $1 and the cost to make each cupcake is $2.50.

I can sell the cookies for $3 a cookie and sell the cupcakes for $5 a cupcake.

## Profits

The profits my business makes will be determined by the money made at my selling prices minus the costs to produce the items.

x=# of cookies produced, y=# of cupcakes produced

Cost=x+2.50y

Sell=3x+5y

Profit= sell-cost

P=2x+2.50y

## Maximize Profits

(0,200) P=2(0)+2.5(200)=$500

(270,200) P=2(270)+2.5(200)=$1,040

(270,0) P=2(270)+2.5(0)=$540

(0,0) P=2(0)+2.5(0)=$0

I will maximize my profits each month if I make and sell 270 cookies and 200 cupcakes.