Next Friday, you plan to sell cakes at a bake sale to raise money for your school. You plan to charge $30 per cake, and you anticipate that you will sell 10 cakes. You can either purchase cakes to sell or bake them yourself. If you purchase the cakes, they will cost $15 each. If you bake your own cakes, your cost depends upon the number of cakes you bake, as shown in the table below. Number of cakes Total cost of baked cakes ($) you bake 0 1 2 3 0 10 36 52 70 90 112 136 162 190 5 7 10
a) How many cakes should you bake? How many cakes should you purchase?
b) Given your answer to part a, how much in total will the 10 cakes cost cake(s) and purchasecake(s) you?
c) How much would it have cost you to bake all 10 cakes?
d) How much would it have cost you to purchase all 10 cakes?

a) How many cakes should you bake? How many cakes should you purchase?

b) Given your answer to part a, how much in total will the 10 cakes cost cake(s) and purchase cake(s) you?

c) How much would it have cost you to bake all 10 cakes?

d) How much would it have cost you to purchase all 10 cakes?

Explanation:

expected sales 10 cakes

price per cake $30

purchase price $15 per cake

Number of cakes      Total cost of baked cakes ($) you bake

0                                                 0

1                                            10

2                                            22

3                                            36

4                                            52

5                                            70       average price = $14 per cake

6                                            90        average price = $15 per cake

7                                            112

8                                            136

9                                            162

10                                            190

If you make 5 cakes your cost will be lower than if you purchase them. But if you want to bake 6 cakes, then the total cost is the same as purchasing them, therefore, it would be better to start purchasing them.

riley- $3

sean- $4

jake- $8

riley has the absolute advantage.