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.
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.
To calculate the total profit, we need to subtract the total costs from the total revenue.
First, let's determine the revenue:
Since it costs $14 to make each cake and you will be selling cakes, we need to calculate the number of cakes that can be made with the $10,000 investment.
Number of cakes = Total investment / Cost per cake
Number of cakes = $10,000 / $14
Next, calculate the total revenue:
Total revenue = Number of cakes * Cost per cake
After calculating the total revenue, we can deduct the total costs to find the total profit.
Total profit = Total revenue - Total costs
To calculate your total profit, you need to subtract the total cost of making the cakes from the total amount of money invested.
Given:
- Total amount of money invested: $10,000
- Cost to make each cake: $14
First, you need to determine how many cakes you can make with the total amount of money invested. This can be calculated by dividing the total amount of money invested by the cost of making each cake:
Total number of cakes = Total amount of money invested / Cost to make each cake = $10,000 / $14
Once you have the total number of cakes, you can calculate the total cost to make all the cakes by multiplying the total number of cakes by the cost to make each cake:
Total cost to make cakes = Total number of cakes * Cost to make each cake
Next, you can calculate the total profit by subtracting the total cost to make the cakes from the total amount of money invested:
Total profit = Total amount of money invested - Total cost to make cakes
By following these steps, you can find the total profit of your bakery business.