Grilled-Cheese Business Break-down of Costs

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Presentation transcript:

Grilled-Cheese Business Break-down of Costs For a grilled-cheese sandwich you need: bread, cheese, butter, and a paper towel. I researched each of these, and found the cheapest prices to be the following: Bread: $1.44/loaf – makes 12 sandwiches Cheese: $3.50/bag – makes 10 sandwiches Butter: $3.75/lb. – makes 40 sandwiches Paper Towels: $0.99/roll – makes 120 sandwiches By dividing out the number of sandwiches made for each ingredient, I could get a unit cost: Bread: $0.12/sandwich Cheese: $0.35/sandwich Butter: $0.09/sandwich Paper Towels: $0.01/sandwich Total Cost per Sandwich: $0.57/sandwich

Graphs Comparing Cost Curve to Different Price Curves Revenue Curve at $1.50/sandwich $ spent/made Cost Curve Break-even point (22 sandwiches) Number of Sandwiches Produced/Sold

Algebraic Solution to System of Cost and Revenue Equations For a price of $1.50: Y = 20 + 0.57x Y = 1.5x 1.5x = 20 + 0.57x .93x =20 X =21.50537 Y= 32.25806 Break-even at 22 sandwiches ($32.26)