Question Number 9 At the end of the day, a local bakery sold 83 cakes and had to throw out 7 cakes due to baking errors. Each cake cost the bakery $6.25 to make. The bakery, in turn, sold each cake for $12.75. What was the total profit earned by the bakery today?

The profit earned by the bakery is $ 495.75

Explanation:

Data provided:

The number of cakes sold by the bakery = 83

The number of cakes thrown out = 7

Cost of each cake = $ 6.25

Selling cost of each cake = $ 12.75

Now,

the total sales value for the bakery = cakes sold * selling Cost of each cake

or

the total sales value for the bakery = 83 * $ 12.75 = $ 1,058.25

Now,

the total cost of making the cakes

= (cakes sold + cakes thrown) * Cost of each cake

or

= (83 + 7) * $ 6.25

or

= $ 562.5

Therefore,

the total profit earned by the bakery at the end of the day

= total sales value - total cost of making

or

= $ 1,058.25 - $ 562.5

= $ 495.75

Hence, the profit earned by the bakery is $ 495.75