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Appendix C Starting a Business
Starting your own business can be exciting and daunting at the same time. Businesses use math when managing finances, determining production levels, designing products and packaging, and monitoring labor. A bakery can be a highly profitable and rewarding business. During this activity, you will apply the skills from Ch. 1 & 2 to navigate some of the issues facing bakery owners. Initial Budget: $80,000 loan from family $38,250 small business loan from bank All loans to be repaid in 10 years
Answer the following questions. Use Equation Editor when writing mathematical expressions or equations. First, save this file to your hard drive by selecting Save As from the File menu. Click the white space below each question to maintain proper formatting.
1. You have recently found a location for your bakery and have begun implementing the first phases
of your business plan. Your budget consists of an $80,000 loan from your family and a $38,250 small business loan. These loans must be repaid in full within 10 years.
What integer would represent your total budget? Correct=$118,250
You will use 25% of your budget to rent business space and pay for utilities. Write an algebraic expression that indicates how much money will be spent on business space and utilities. Do not solve. Rent and utilities=Budget×0.25
How much money will rent and utilities cost? Explain how you arrived at this answer. Rent and Utilities=Budget×0.25 Rent and Utilities=118,250×0.25=29,562.50
Imagine an investor has increased your budget by $22,250. The investor does not need to be repaid. Rather, he becomes part owner of your business. Will the investor contribute enough money to meet the cost of rent and utilities? Support your answer and write an equation or inequality that illustrates your answer. No, the investors added 22,250 and the rent is 29,562.50 22,250‹Budget×0.25
This equation illustrates your remaining funds after paying for rent and utilities. How much money is left? Explain how you arrived at your answer. Money that is left over is 0.75 (118,250) + 22,250=110,937.50. The money left is part of the loans money less then rent. That is (1-.025)×118,250. Then I had to add in the partners investment of 22,250. That leaves 110,937.50. $38,250 + $80,000+ $22,250-0.25($80,000 + $38,250) = 110,937.50
50 R=118. Rewrite the formula to solve for C. and your Profit to get the Revenue MAT/116 .19) R=59.30 Cookies sold=−−−−−− =670 cookies 1. two baking sheets with 20 cookies each. F(7)=45×7+70=385 degrees F. Profit can be represented algebraically by the equations: Profit = Revenue .2. The instruction manual on the industrial oven suggests the oven temperature will increase by 45 degrees Fahrenheit per minute. f(x)=45x+70 where x is the number of minutes it has been “on”.28+59. What is the revenue for that day? Explain your answer. from the revenue R. the temperature is 70 degrees Fahrenheit. C=Cost C=2(12s)+2(20c)+2s+10c C=24s+40c=2s+10c C=26s+50c b. When the oven is initially turned on. and one baking sheet with 2 scones and 10 cookies.28)+50(1. Simplify your expression by combining like terms. but you also do not want to waste a lot of time waiting for the oven to reach the desired baking temperature. 3. and the cost of running the business for the day is $1.28 each and the cookies at $1. C=R-P Imagine your profit for 1 day is $1. Your profit P is determined by subtracting the cost C.Cost OR P=R-C a.78 c. the amount of money you earn from selling your product.19 each. Write and solve an equation that represents how many cookies were sold. Write an expression that illustrates the total cost of all baked goods in the scenario above using the variable s to represent the cost of scones.281. How much total revenue would result from selling all the scones and cookies baked in the oven at one time? R=26(2. R=C+P R=1463+1281 R=2744 Revenue equals 2744 because the equation tells us to add your Cost. Yesterday your store earned $797.30 just from the sale of cookies. You are trying to decide how to most efficiently use your oven. In your industrial oven. a. and the variable c to represent the cost of cookies. you bake two baking sheets with 12 scones each. b. the amount of money it costs to operate a business. Imagine you have decided to price the scones at $2.463. What will the temperature of the oven be after 7 minutes? Write an expression and explain how you arrived at your answer.19 4. 797. You are given the y-intercept as 70 and the slope as 45. You do not want the oven running at a high temperature when you are not baking.
000 100% Percentage a.5. How much do rent and utilities cost monthly? 0. How much do materials cost monthly? 0.00 d. Category Labor Materials Rent and utilities Miscellaneous Total Cost $1.7% 5000 What percentage of the total monthly budget is spent on miscellaneous items? 1015 (———)*100=20. You have a monthly budget of $5.3% 5000 c. it is important to take inventory of where your money is spent.25*5000=$1250.18*5000=$900. 1835 What percentage of the total monthly budget is spent on labor? (———)*100=36. b.000.015 $5.835 18% 25% $1. Refer to the table below and answer the questions that follow. When managing a business. Round your answers to the nearest tenth of a percent.00 Tonya Dodson AXIA College EST Tonyad348@gmail.com MAT/116 .