To calculate the total profit, we need to subtract the total costs from the total revenue.
The total revenue can be calculated by multiplying the number of cakes sold by the selling price per cake. Since the number of cakes sold is not provided, we cannot calculate the exact revenue.
However, we can calculate the maximum number of cakes that can be made with the given investment of $10,000.
The maximum number of cakes can be calculated by dividing the total investment by the cost to make each cake:
Maximum Number of Cakes = Total Investment / Cost to Make Each Cake
Maximum Number of Cakes = $10,000 / $14
Let's calculate the maximum number of cakes:
Maximum Number of Cakes = $714.29
Since we cannot make a fraction of a cake, the maximum number of cakes that can be made with the given investment is 714 cakes.
Now, assuming all the cakes are sold, we can calculate the total revenue.
Total Revenue = Number of Cakes Sold * Selling Price per Cake
Total Revenue = 714 cakes * Selling Price per Cake
The selling price per cake is not provided, so we cannot calculate the exact total revenue.
Now, let's assume that the selling price per cake is $20.
Total Revenue = 714 cakes * $20
Total Revenue = $14,280
Next, let's calculate the total costs. The cost to make each cake is $14.
Total Costs = Number of Cakes * Cost to Make Each Cake
Total Costs = 714 cakes * $14
Total Costs = $9,996
Finally, to calculate the total profit, we subtract the total costs from the total revenue.
Total Profit = Total Revenue - Total Costs
Total Profit = $14,280 - $9,996
Total Profit = $4,284
Therefore, the total profit, considering the costs, is $4,284.
Unit 4 Portfolio Part 1
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.
e)
Don’t forget that at the beginning of the process you had to spend some of your own money to get started. With the costs taken into account, what was your total profit?
1 answer