Question

You want to start a bakery business to earn money. The total amount of money you will invest is $10,000. You will be selling cakes. It will cost you $14 to make each cake. using your answer from part b and your equation from part c, what is the money you can hope to earn from your business

Answer 1

From part b, we know that the profit per cake is $10.

Since it costs $14 to make each cake, the total profit per cake is $10 - $14 = -$4.

To find the money that can be earned from the business, we need to consider the number of cakes that can be sold.

Let's assume each cake is sold for $x. To cover the cost of making each cake, $14, the selling price needs to be at least $14 higher than the cost of making it. So, the selling price per cake is $14 + $14 = $28.

Therefore, the money that can be earned from the business is the profit per cake multiplied by the number of cakes sold.

Using the equation from part c, we have:

Money earned = (Profit per cake) x (Number of cakes sold)
= $10 x (Number of cakes sold)

To find the number of cakes that can be sold, we can divide the total investment by the cost per cake:

Number of cakes sold = Total investment / Cost per cake
= $10,000 / $14
≈ 714.29

As you cannot sell a fraction of a cake, the maximum number of cakes that can be sold is 714.

Therefore, the money that can be earned from the business is:

Money earned = $10 x (Number of cakes sold)
= $10 x 714
= $7,140.