To determine the maximum total profit, we first need to calculate the number of cakes that can be made with the available 200 hours.
Since each cake takes 2.5 hours to make, the maximum number of cakes that can be made is given by 200 hours / 2.5 hours per cake = 80 cakes.
Next, we calculate the total cost of making these 80 cakes. Since the cost per cake is $14, the total cost is given by 80 cakes * $14 per cake = $1120.
Finally, we can calculate the total revenue generated by selling these 80 cakes. Since the selling price per cake is $50, the total revenue is given by 80 cakes * $50 per cake = $4000.
The maximum profit is obtained by subtracting the total cost from the total revenue: $4000 - $1120 = $2880.
Therefore, the maximum total profit that can be obtained by spending 200 hours making the cakes is $2880.
You are trying to decide if it is worth the investment to make the cakes if it takes 2.5 hours to make each cake and you have 200 hours this summer to devote to creating your product.
Remember it costs $14 to make the cakes and you are selling them for $50 each. If you only spend the 200 hours making the cakes, what was your maximum total profit?
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1 answer