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 $25 each. If you bake your own cakes, your cost depends upon the number of cakes you bake, as shown in the table below. Number of cakes you bake Total cost of baked cakes ($) 0 0 1 10 2 22 3 36 4 52 5 70 6 90 7 112 8 136 9 162 10 190   a) How many cakes should you bake? How many cakes should you purchase?   Bake ___ cake(s) and purchase ___ cake(s).   b) Given your answer to part a, how much in total will the 10 cakes cost 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?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
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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 $25 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 you bake Total cost of baked cakes ($)
0 0
1 10
2 22
3 36
4 52
5 70
6 90
7 112
8 136
9 162
10 190

 

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

 

Bake ___ cake(s) and purchase ___ cake(s).

 

b) Given your answer to part a, how much in total will the 10 cakes cost 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?

 

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