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.
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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 calculate the maximum total profit, we need to determine the number of cakes that can be made with the available money for cake production and the selling price of each cake.
Since each cake costs $14 to make and you have an additional $300 from your parents, the total money available for cake production is: $300
To determine the number of cakes that can be made, divide the available money by the cost to make each cake:
300 / 14 = 21.428
Since you cannot make a fraction of a cake, you can make a maximum of 21 cakes.
Selling each cake for $50, the total revenue from selling all 21 cakes would be:
21 * $50 = $1050
Subtracting the cost of making the cakes ($14 per cake) from the total revenue gives us the maximum total profit:
$1050 - (21 * $14) = $315
Therefore, the maximum total profit, if you only spend 200 hours making the cakes, is $315.
To find the maximum total profit, we need to calculate the profit for each cake and then subtract the total cost of making the cakes.
The profit per cake can be calculated by subtracting the cost of making the cake from the selling price of the cake. In this case, the cost of making one cake is $14 and the selling price is $50. Therefore, the profit per cake is $50 - $14 = $36.
Since you have spent 200 hours making the cakes, we need to calculate the number of cakes you can make in that time. If it takes 200 hours to make cakes, and each cake takes about 1 hour to make, then you can make 200 cakes.
Now we can calculate the maximum total profit. Multiply the profit per cake ($36) by the number of cakes (200):
Maximum total profit = $36 * 200 = $7200
Therefore, your maximum total profit, if you only spend 200 hours making the cakes, would be $7200.
To calculate the maximum total profit, we need to consider the cost of making the cakes and the total revenue generated from selling them.
1. Calculate the cost of making the cakes:
- Cost per cake: $14
- Number of cakes made: 200
- Cost of making the cakes: $14 x 200 = $2800
2. Calculate the revenue generated from selling the cakes:
- Selling price per cake: $50
- Number of cakes sold: 200
- Revenue from selling the cakes: $50 x 200 = $10000
3. Calculate the total profit:
- Total profit = Revenue - Cost
- Total profit = $10000 - $2800 = $7200
Therefore, the maximum total profit that can be earned by selling the cakes while spending 200 hours making them is $7200.