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?
$7200
Does the investment you make and the time constraint allow you to profit from this venture?
O Yes, I can make more than $10,000
O No, I make less than $10,000
O Yes, I can make more than $10,000
Based on the given information, in order to find the maximum total profit, we need to calculate the total revenue and deduct the total cost.
1. Calculate the total revenue:
Since each cake is sold for $50, the total revenue can be calculated by multiplying the selling price ($50) by the number of cakes:
Total revenue = $50 x Number of cakes
2. Calculate the total cost:
Since it costs $14 to make each cake, the total cost can be calculated by multiplying the cost per cake ($14) by the number of cakes:
Total cost = $14 x Number of cakes
3. Calculate the maximum number of cakes that can be made with 200 hours:
If we know the time to make each cake, we can divide the total available time (200 hours) by the time required to make each cake, to find the maximum number of cakes:
Maximum number of cakes = Total available time (hours) ÷ Time to make each cake (hours)
4. Calculate the maximum total profit:
To find the maximum total profit, we need to subtract the total cost from the total revenue:
Maximum total profit = Total revenue - Total cost
Therefore, to answer the question, we need to determine if the maximum total profit exceeds $10,000.
Let's calculate step-by-step:
1. Calculate the total revenue:
Total revenue = $50 x Number of cakes
2. Calculate the total cost:
Total cost = $14 x Number of cakes
3. Calculate the maximum number of cakes that can be made with 200 hours:
Maximum number of cakes = Total available time (200 hours) ÷ Time to make each cake (hours)
4. Calculate the maximum total profit:
Maximum total profit = Total revenue - Total cost
Finally, compare the maximum total profit to $10,000 to answer if the investment and time constraint allow you to profit from this venture.
To calculate your maximum total profit, you need to subtract your total costs from your total revenue. In this case, the cost to make each cake is $14, and you are selling each cake for $50.
First, calculate the total revenue by multiplying the selling price ($50) by the number of cakes you can make in 200 hours. Let's assume you can make "x" cakes in 200 hours.
Total Revenue = Number of Cakes * Selling Price
Total Revenue = x * $50
Next, calculate the total cost by multiplying the cost to make each cake ($14) by the number of cakes you can make in 200 hours.
Total Cost = Number of Cakes * Cost per Cake
Total Cost = x * $14
To find the maximum total profit, subtract the total cost from the total revenue.
Maximum Total Profit = Total Revenue - Total Cost
Maximum Total Profit = (x * $50) - (x * $14)
Simplifying the equation, we get:
Maximum Total Profit = x * ($50 - $14)
Maximum Total Profit = x * $36
Since we are looking for the maximum total profit, we need to determine the maximum possible value of "x." However, the given information doesn't provide any constraints or limits on "x," so we can't determine the exact maximum profit with certainty. Without more specific information, we can't calculate whether the investment and time constraint will allow you to profit from this venture.
Therefore, the correct answer is:
O Cannot determine without more information