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?
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.
To calculate the maximum total profit, you need to determine the number of cakes you can make within the given time frame and then calculate the profit per cake.
First, calculate the number of cakes you can make by dividing the total available time (200 hours) by the time it takes to make each cake (2.5 hours):
Number of cakes = 200 hours / 2.5 hours per cake = 80 cakes
Since you have determined that you can make 80 cakes, calculate the total cost of making the cakes by multiplying the cost per cake ($14) by the number of cakes:
Total cost = $14 per cake * 80 cakes = $1,120
Next, calculate the total revenue by multiplying the selling price per cake ($50) by the number of cakes:
Total revenue = $50 per cake * 80 cakes = $4,000
Finally, calculate the maximum total profit by subtracting the total cost from the total revenue:
Maximum total profit = Total revenue - Total cost = $4,000 - $1,120 = $2,880
Therefore, your maximum total profit, if you spend the entire 200 hours making the cakes, would be $2,880.
To calculate the maximum total profit, we need to determine how many cakes you can make within the 200 hours and then subtract the cost of making them from the revenue generated by selling them.
First, we need to calculate how many cakes you can make in 200 hours. Since it takes 2.5 hours to make each cake, we can divide the total available time (200 hours) by the time required to make one cake (2.5 hours):
Number of cakes = 200 hours / 2.5 hours per cake
Number of cakes = 80 cakes
Next, we need to calculate the total cost of making 80 cakes. Since it costs $14 to make one cake, we multiply the cost per cake by the total number of cakes:
Total cost = $14 per cake * 80 cakes
Total cost = $1120
We can now calculate the total revenue generated by selling the cakes. Since each cake is sold for $50, we multiply the selling price per cake by the total number of cakes:
Total revenue = $50 per cake * 80 cakes
Total revenue = $4000
Finally, we can calculate the maximum total profit by subtracting the total cost from the total revenue:
Maximum total profit = Total revenue - Total cost
Maximum total profit = $4000 - $1120
Maximum total profit = $2880
Therefore, the maximum total profit, if you spend the entire 200 hours making the cakes, would be $2880.