The revenue for each jumbo biscuit sold is $1, and the revenue from each regular biscuit is sold at $0.65. The cost to make each jumbo biscuit is $0.20, and the cost to make each regular biscuit is $0.15. Can the bakery produce 10 regular biscuits and 55 jumbo biscuits? if not, explain which limitations are violated.

Question

Damian

Mathematics

24 April, 00:08

The revenue for each jumbo biscuit sold is $1, and the revenue from each regular biscuit is sold at $0.65. The cost to make each jumbo biscuit is $0.20, and the cost to make each regular biscuit is $0.15. Can the bakery produce 10 regular biscuits and 55 jumbo biscuits? if not, explain which limitations are violated.

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Reeve · Answer 1

Given that the revenue for each jumbo biscuit sold is $1

Given that the cost to make each jumbo biscuit is $0.20

Then profit on each jumbo biscuit = $1 - $0.20 = $0.80

Since positive profit occurs so producing jubo biscuit is good idea.

Given that the revenue from each regular biscuit is sold at $0.65

Given that the cost to make each regular biscuit is $0.15

Then profit on each regular biscuit = $0.65 - $0.15 = $0.50

Since positive profit occurs so producing regular biscuit is good idea.

As in both business, we are getting positive profit. Infact more profit on jumbo biscuits so YES, bakery can produce 10 regular biscuits and 55 jumbo biscuits.