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. 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 cost from the total investment.
Total cost:
Cost per cake = $14
Total number of cakes = $10,000 / $14 per cake = 714.29 cakes
Since you cannot sell a fraction of a cake, let's assume you can sell 714 cakes.
Total cost = 714 cakes * $14 per cake = $9,996
Total profit = Total investment - Total cost
Total profit = $10,000 - $9,996 = $4
Therefore, your total profit is $4.