# Solving Systems

## Situation

You are a young entrepreneur and you are interested in starting your own cupcake business. However, you can't currently afford the bakery, the ovens, and all the other startup costs you have, so you need to take a loan. Before you can apply for the loan. you need to put together a business plan wherein you will explain your plan for making your business profitable.

## Income and Cost

You will sell each batch of cupcakes for 6\$ each. Also, you will make exactly 30\$ each day regardless of the number of cupcakes you sell. You get that extra money because you let the theater next door place a poster in your store window, so they pay you the 30\$ for letting them advertise.

However, it costs money to make cupcakes. To run your electricity and pay your employees, it will cost you 250\$ each day. Also, it costs money for the ingredients that you need to make the cupcakes. For every batch of cupcakes, you will spend .50 on ingredients.

## Application Questions

1) How many batches of cupcakes could you sell each day ad still lose money? If you sell less than 40 batches of cupcakes you would be loosing money because you wouldn't have the money.

2) How many batches of cupcakes could you sell each day to break even? You would have to sell 40 batches to breakeven because it means that you make an amount of money but you also loose that you earned.

3) How many batches of cupcakes must you sell to make a profit? You would have to sell more than 40 batches of cupcakes to make a profit.

## Application Questions

Gino breaks his thumbs because the bakery doesn't earn enough money to pay him back. When you plug the numbers into the equations and calculate the days the bakery had. He didn't make enough money.