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?
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.
To calculate the total profit, we need to consider the revenue generated from selling cakes and the expenses incurred in making those cakes.
Given:
Total investment = $10,000
Cost to make each cake = $14
Let's assume the selling price of each cake is $x.
To find the total profit, we need to calculate the total revenue and total expenses.
Total Revenue:
Since the selling price of each cake is unknown, we cannot determine the exact revenue. However, we can represent the revenue as "x" times the number of cakes sold.
Total Expenses:
The total expenses can be calculated by multiplying the cost to make each cake by the number of cakes sold. Since the total investment of $10,000 must also be considered as an initial expense, we need to add it to the expenses.
Total Expenses = (Cost per cake x Number of cakes sold) + Total investment
Now, let's assume the number of cakes sold is "y".
Total Expenses = ($14y + $10,000)
Total Profit:
The profit can be calculated as:
Total Profit = Total Revenue - Total Expenses
Total Profit = (x * y) - ($14y + $10,000)
As the selling price of each cake is unspecified, we cannot calculate the total profit without this information.
To calculate your total profit, you need to consider the costs and the revenue from selling the cakes.
First, let's determine how many cakes you can make with the total investment of $10,000. Since it costs you $14 to make each cake, you divide the total investment by the cost per cake:
$10,000 / $14 = 714.29 cakes (rounded down to 714 cakes)
So, with an investment of $10,000, you can make 714 cakes.
Now, let's calculate the revenue from selling these cakes. Since you will be selling each cake, you multiply the number of cakes (714) by the selling price of each cake. However, the selling price of each cake is not provided, so please provide that information.
Once the selling price is determined, you can calculate the revenue from selling all the cakes.
After getting the revenue, you need to subtract the total cost of making the cakes (714 cakes * $14 per cake) from the revenue to find the profit.
Profit = Revenue - Total Cost
Please provide the selling price of each cake so that I can help you calculate the total profit.