![loaf of bread, sliced]()
Owning a Small Business
You own a bakery that makes loaves of bread, pies, and cakes. The cost to you for baking these items is 50 cents for each loaf of bread, $1 for each pie, and $2.50 for each cake.
Through past experience you have learned that the average number of food items you sell in a week is dependent upon the prices you set for the items.
| Price for one |
Average number of loaves sold per week |
Average number of pies sold per week |
Average number of cakes sold per week |
| |
$0 |
500 |
210 |
200 |
| $1 |
320 |
180 |
160 |
| $2 |
180 |
150 |
120 |
| $3 |
80 |
120 |
80 |
| $4 |
20 |
90 |
50 |
| $5 |
0 |
60 |
30 |
| $6 |
0 |
30 |
25 |
| $7 |
0 |
0 |
20 |
| $8 |
0 |
0 |
10 |
| $9 |
0 |
0 |
0 |
- Make a chart like the one above, but leave room for 6 additional columns. Your column headings should be (in this order):
Price for one Average number of loaves sold per week
Profit earned from each loaf sold
Total profit earned from bread Average number of pies sold per week
Profit earned from each pie sold Total profit from pies
Average number of cakes sold per week
Profit earned from each cake sold
Total profit from cakes
Use the above information to fill in the chart.
- Draw three graphs (one for each food item) to visually express the relationship between price and total profit earned.
- Set your prices for each food item. Remember that you want to earn the maximum profit!