To calculate the total profit, we need to subtract the total costs from the total revenue.
First, let's calculate the total revenue. The revenue per cake is not given, so we'll need to find the selling price of each cake. Let's assume you sell each cake for $20.
The number of cakes you can make with an investment of $10,000 would be:
Number of cakes = Total investment / Cost per cake
Number of cakes = $10,000 / $14 = 714.29 (approx.)
Since you can't sell a fraction of a cake, let's round down the number of cakes to 714.
Total revenue = Number of cakes * Selling price per cake
Total revenue = 714 * $20 = $14,280
Now, let's calculate the total cost of producing the cakes:
Total cost = Number of cakes * Cost per cake
Total cost = 714 * $14 = $9,996
Finally, let's calculate the total profit:
Total profit = Total revenue - Total cost
Total profit = $14,280 - $9,996 = $4,284
Therefore, the total profit would be $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
1 answer