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Chapter 3

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by

Ana Aulet

on 22 November 2013

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Transcript of Chapter 3

Chapter 3: Hot! Hot! Hot!
Sizzling Sauce Company Products.
We want to minimize costs and maximize profit.
Production Graph ( Activity 1)
Minimum sales for maximum profit (Activity 2)
Red Hot Sauce: 150 pints
Scorchin' Hot Sauce: 75 pints
$255
Production costs (Activity 3)
The Production cost of the Red Hot Sauce
1pt tomato sauce w/ onions- $2.50
5 green peppers, diced-$3.50
4 hot chile peppers-$2.00
Total cost-$8.00
To maintain my profit It must be sold at $9.99
Distribution (Activity 4)
Extending the project.
x = the number of pints of Red Hot Sauce
y = the number of pints of Schorchin' Hot Sauce

5x + 4y < 1050
4x + 8y < 1200, x > 0, y > 0

If 100 pints of each sauce are produced , there will be 150 green peppers left over
The production cost of the Scorching Hot Sauce
1pt tomato sauce w/ onions-$2.50
4 green peppers diced- $2.87
8 hot chile peppers, seeded and diced- $4.00
Total cost - $9.37
To maintain my profit i have to sell it at $11.50
*Prices taken by weight and price of food from walmart during the week of 11-18-2013
Some expenses that we could expect would be production expenses of making the sauce, bottling the sauce and labeling. The expenses from shipping to our distributors, and paying employees. Also the expenses of keeping any machinery used to create the sauce up to date and repaired.
288pt every 8 weeks

288/8=36pt every week

60pt every 4 weeks

60/4 = 15pt every week

24pt every week

24/1 = 24pt every week

36+24+15 = 75 pt every week
Agustina Cipriani
Jaquiline Calzadilla
Abby Ackerman
Ana Aulet
Full transcript