Your parents heard about the success of your business and they want to help you out. Suppose they want to give you an additional $300 to put toward your business. However, there’s a catch. If you make more than $600 additional profit, you have to give them 10% of your earnings above $600. For example, if you have earned $650, then you owe 10% of $50, or $5, to your parents. k)
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 find the maximum total profit, we need to determine the maximum number of cakes that can be made and sold.
Each cake costs $14 to make and is sold for $50, resulting in a profit of $50 - $14 = $36 per cake.
Assuming all 200 hours are spent exclusively on making cakes, and each cake takes 1 hour to make, the maximum number of cakes that can be made is 200 / 1 = 200 cakes.
Therefore, the maximum total profit is 200 cakes * $36 profit per cake = $7200.
To calculate the maximum total profit, we need to consider the cost of making the cakes and the selling price.
1. Calculate the profit per cake:
Profit per cake = Selling price - Cost price
Profit per cake = $50 - $14
Profit per cake = $36
2. Calculate the number of cakes you can make with 200 hours:
Number of cakes = Total hours / Time per cake
Number of cakes = 200 hours / 1 hour
Number of cakes = 200 cakes
3. Calculate the total cost of making all the cakes:
Total cost = Cost per cake x Number of cakes
Total cost = $14 x 200 cakes
Total cost = $2,800
4. Calculate the total revenue from selling all the cakes:
Total revenue = Selling price per cake x Number of cakes
Total revenue = $50 x 200 cakes
Total revenue = $10,000
5. Calculate the total profit:
Total profit = Total revenue - Total cost
Total profit = $10,000 - $2,800
Total profit = $7,200
Therefore, your maximum total profit, if you only spend 200 hours making the cakes, would be $7,200.
To calculate your maximum total profit, we need to consider the cost of making the cakes and the additional profit you may earn from selling them.
First, let's calculate the cost of making the cakes. You mentioned that it costs $14 to make each cake, and you will be selling them for $50 each. You also mentioned that you spent 200 hours making the cakes.
To calculate the total cost of making the cakes, we multiply the cost per cake ($14) by the number of cakes made. To determine the number of cakes made, we use the total number of hours spent divided by the hours it takes to make one cake. So, the calculation would be:
Total cakes = Total hours spent / Hours per cake
Total cakes = 200 hours / 1 hour per cake
Total cakes = 200 cakes
Next, to calculate the cost of making the cakes, we multiply the total cakes by the cost per cake:
Cost of making the cakes = Total cakes * Cost per cake
Cost of making the cakes = 200 cakes * $14
Cost of making the cakes = $2800
Now that we have the cost of making the cakes, we can calculate the maximum profit. The profit is calculated by subtracting the cost of making the cakes from the revenue generated by selling the cakes.
Total revenue = Total cakes * Price per cake
Total revenue = 200 cakes * $50
Total revenue = $10,000
Maximum profit = Total revenue - Cost of making the cakes
Maximum profit = $10,000 - $2,800
Maximum profit = $7,200
Therefore, your maximum total profit, considering the cost of making the cakes and the additional $300 given by your parents, would be $7,200.