Mary Torres owns and operates a bakery. During the past week she sold 500 loaves of bread at \$2.25 per loaf. The raw materials for each loaf cost Ms. Torres \$1.80.
- Aside from the costs from raw materials, what other costs will Ms. Torres use to calculate her profit for the week?
Is the correct answer the price charged per loaf and how much money they gain per loaf?

For each disadvantage, decide what actions you would take to overcome that disadvantage. Analyze and describe how your actions might affect the profit your business earns.

**Risking the loss of your savings.
I put: You could be less risky, but then you might not make as much money as you could.

**Lacking steady wages and employee benefits.
I am not sure how to overcome this... ???

**Paying all the expenses of a new business.
You could cut back on expenses but then your business might not have many features that would interest people, which would cause you to lose money.

Mary Torres may have other costs, such as employees, rent and utility bills.

Mary has to have property taxes, utilities (water, garbage, electricity, etc), maintenance costs. These overhead costs are typically fifty percent of the cost of product.

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