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Garden Goodness: Organic Pestos & Spreads

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  1. Garden Goodness: Organic Pestos & Spreads Mrs. L’s Home Business

  2. Mrs. Langford All Hours

  3. Business Plan • In my business, Garden Goodness, I will grow fresh herbs and tomatoes (organically) and produce fresh pestos that can be used on pasta, as pizza sauce, bruschetta topping, with potatoes, couscous or other ways. The pestos will be in 1 cup jars . My main two pestos will be fresh herb and sundried tomato.

  4. Business Plan: Restrictions • I won’t be able to produce more than 100 jars of the fresh herb pesto per month and no more than 200 jars of tomato pesto each month. In my start-up phase I can’t spend more than $800 each month. I also cannot spend more than $7500 total on any one product.

  5. Business Plan: Costs & Selling Prices • The fresh herb pesto will cost $4 a jar to produce and the tomato pesto will cost $3 a jar to produce. • I can sell the pesto for $7.50 a jar for the fresh herb and $6 a jar for the tomato pesto

  6. Restrictions: Systems of Inequalities • x=# fresh herb jars; y = # of tomato jars each month • x> 0, x < 100 • y> 0, y < 200 • 4x + 3y < 800 • 4x< 7500 • 3y<7500

  7. Business Plan: Profits • My profits will be the money made at my selling price minus the costs. • x=# fresh herb jars; y = # of tomato jars • Cost = $4x + $3y • Sell = $7.50x + $6y • Profit = sell – cost • P = (7.5x + 6y) – (4x + 3y) OR • P = 3.50x + 3y

  8. Maximize Profits • (0, 200) P = 3.5 (0) + 3(200) = $600 • (50, 200) P = 3.5(50) + 3(200) = $775 • (100, 133.3) P = 3.5 (100) + 3(133 1/3) = $750.50 • (100, 0) P = 3.5 (100) + 3(0) = $350 • (0, 0) P = 3.5 (0) + 3(0) = $0 • I will maximize my profits each month if I produce 200 jars of tomato pesto and 50 jars of fresh herb pesto.