Final Project

MAT 225
Cindy Naaykens
December 2, 2017

Cindy’s Pies

Cindy’s Pies is a business that creates pies for every season and any occasion. This business

was created to supplement Cindy’s income. Pie selections will consist of traditional deep-dish cream

pies, fruit pies, and meat pies. Pre-paid orders are taken Monday thru Sunday each week. Pies will

be ready for pick up on Wednesday. Business will be by orders only as she will be working out of

her home on a part time basis. Pies will be made from fresh produce when available. Frozen berries

or vegetables will be substituted when they are not in season.

Pies$3.66
Chocolate Cream Apple Chicken
$8 $15 $15
Banana Cream Blueberry Beef
$8 $18 $15
Lemon Meringue Raspberry Pork
$8 $18 $15
Vanilla Cream Mixed berry Turkey
$8 $18 $15
Coconut Custard Strawberry Mincemeat*
$8 $18 $18

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MAT 225
Cindy Naaykens
December 2, 2017

Pie Crust
Item Measurements Cost Extended Cost
3 cups flour 25 lb. flour = 81.2 cups $16.50 – 25lb gold medal $.609
$.203 per cup
1 ¼ cup shortening 4 lb. shortening = 6 cups $6.60- 48 oz. (14c oz.) $1.375
$1.10 per cup
1 tbsp sugar 10 lbs. sugar = 22.7 $5.80 – 10 lb. (58c lb.) .0159
cups $.255 per cup $.0159 per tbsp.
16 tbsp. = 1 cup
2 tsp salt 26 oz. = 130 tsp $.89 – 26 0z (.03 oz.)130 tsp $.0136
.0068 per tsp
½ cup water $0.00 $0
1 egg 1 dozen = 12 $1.98 – dozen large $.165
$.165 each
1 tsp Vinegar 1 gallon = 922 tsp $3.28 – gallon $.0035
$.00355 per tsp
$2.182
Custard
Item Measurements Cost Extended Cost
4 eggs 1/3 doz . $1.98 – dozen large $.66
$.165 each
3 cups milk 1-gallon milk = 17.2 $4 – gallon $.696
cups $.232 per cup
1/2 cup sugar $.255 per cup $.127
½ tsp vanilla 32 oz. imitation vanilla $9.95 – 32 oz. 192 tsp $.0255
$.051 per tsp
One crust $1.091
$2.599

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 Final Project
MAT 225
Cindy Naaykens
December 2, 2017

Pies
Item Measurements Cost Extended Cost

Chocolate 2 Boxes $1.28(5oz) $2.56 $5.075

cream pudding
1 cup Evaporated $2.14 (12oz).178 oz. $1.424
milk
One crust $1.091
Banana cream 2 Boxes $.98 (3oz) $1.96 $4.975
pudding
1 cup Evaporated $2.14 (12oz) $1.424
milk
1 Banana ? $.50 $.50
One crust $1.091
Lemon 2 Boxes $1.50 (2.75oz) $3.00 $4.751
Meringue pudding
eggs 4 yolks in $.66
filling Whites
for meringue
One crust $1.091
Vanilla cream 2 Boxes $.98 (3oz) $1.96 $4.475
pudding
1 cup Evaporated $2.14 (12oz) $1.424
milk
One crust $1.091
Coconut Custard Refer to custard $2.599 $4.930
Custard recipe
coconut 1 cup $2.175 (14oz) .155 oz. $1.24
One crust $1.091
Apple Apples 7 or 8 apples ?? $4.00 $7.183
Sugar 1 cup $.255 per cup $.255
Cinnamon 1 tsp $7.98-18 oz. $.0738
(.44 oz.) ½ oz.=3tsp
Nutmeg 1 tsp $4.44 1.1oz- $4.036 $.672
oz.
Two crusts $2.182

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

Blueberry Blueberries 4 cups $6.29 lb. $12.58 $15.017

Sugar 1 cup $.255 per cup $.255
Two crusts $2.182
Raspberry Raspberries 4 cups $6.29 lb. $12.58 $15.017
Sugar 1 cup $.255 per cup $.255
Two crusts $2.182
Strawberry Strawberries 4 cups $6.29 lb. $12.58 $15.017
Sugar 1 cup $.255 per cup $.255
Two crusts $2.182
Mixed berry Berries 4 cups $6.29 lb. $12.58 $15.017
Sugar 1 cup $.255 per cup $.255
Two crusts $2.182
Chicken 1.5 lb. $1.29 lb. $1.935 $5.272
Vegie mix See vegie cost sheet $1.155
Two crusts $2.182
Beef 1.5 lb. $5.99 lb. $8.985 $12.322
Vegie mix See vegie cost sheet $1.155
Two crusts $2.182
Pork 1.5 lb. $5.99 lb. $8.985 $12.322
Vegie mix See vegie cost sheet $1.155
Two crusts $2.182
Turkey 1.5 lb. $1.29 lb. $1.935 $5.272
Vegie mix See vegie cost sheet $1.155
Two crusts 2.182
Mince meat $72.99-6 pies $12.165 $14.347
Two crusts 2.182

Cost - Vegetables for Meat Pies

Potatoes 1 lb. $7 -20 lb. $.35
Carrots ¼ lb. $.89 lb. $.225
Peas ¼ lb. $1.29 lb. $.3225
Celery 2 stocks $1.29 pkg. – 10 stocks $.258
$1.155

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

The pie crust recipe will produce one fruit or meat pie or two cream pies.
needed for meat pies: 1.5 Pounds of meat plus vegetables in gravy except mincemeat which
will be bought premade.
Pie Color Key Price
Chocolate Cream $8
Coconut Custard $8
Apple $15
Mixed Berry $18
Chicken $15

1. Cost/profit/revenue

Because the business is part time and out of her home Cindy has a very low fixed cost of
$40.00 per month. For each pie she makes it cost her $0.60 for the plate and box.
The first week Cindy had orders for 10 pies, 2 Chocolate Cream, 3 Coconut Custard, 3 Apple,
and 2 Chicken.
A. How much revenue did Cindy have in week one?
R(x)=2(8) + 3(8) + 3(15) + 2(15) $115.00
Revenue is the amount received from sales.
Cindy had $115.00 in revenue for her sales in the first week.

B. What would her profit be?

P(x)= R(115) - C(63.03)+$10

R(x)=2(8) + 3(8) + 3(15) + 2(15) $115.00

C= 2(5.075) + 3(4.93) + 3(7.183) + 2(5.272) +10(.60) -$ 63.03
Fixed cost - $ 10.00
$41.97
To determine a profit use the formula P(41.97) = R(115) - C(63.03+10)
When determining profit take the revenue R and subtract the C cost from it. The
answer is the amount of profit realized.

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

Cindy’s profit for making 10 pies in week one is $41.97.

The fixed cost that does not change is $40 per month, to find the fixed cost to produce
the pies for one week you must divide the $40 by 4.33, but we will use 4 for this
example, the number of weeks in a month. The cost to make the ordered pies is
$57.03. The variable cost $0.60 changes and is called the slope. The slope increases
with each number of pies produced.
C. Jeff is concerned Cindy has over extended herself again. If she sold only Apple pies, how
many would she need to sell to break even each month?
The break-even point can be figured using the formula C(x) = R(x)
Apple pies C($7.18+.60)x +40 = R(15)x
7.78x+40 = 15x
22.78x= 40
40/22.78=1.7559
Cindy would need to take orders for and sell at least 2 pies to break-even.

2. Depreciation Function
Cindy needs to purchase an additional oven accommodate the increase in business. The cost
of the new oven will cost $6500. She estimates that the oven will be operational for 8 years
and have a salvage value of $300.
We find the depreciation using the straight-line depreciation formula B= mx + b and the
points (0,6500) (8,300).
B = book value = $6500
X = number of years = 8
Salvage value = $300
300−6500 −6200
Slope = m= = = -$775
8−0 8

y-intercept = $6500 or beginning value

A. What is the annual depreciation? The depreciation is equal to the slope or the oven
depreciates at a rate of $775 per year.
B. What is the value of the oven after 4 years?

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

The book value after 4 years is found by multiplying the depreciation by the number of years
old the product is. Then subtracting this amount from the book value at the time of purchase.
B= -$775(4) + $6500 = $3400
3. Matrix Algebra (addition, subtraction, and multiplication)
Cindy is anticipating her business will pick up because of the holidays. Making Pies requires
labor-minutes in two categories: preparing the crust and finishing the pie.
Matrix A
Time to prepare

Crust Finishing
Kind of Pie

Chocolate Cream 10 15
Mincemeat 15 15

She already has pre-orders for these pies on two days. These are expected to be a large
percentage of her extra workload.
Marix B
Type of Pie

Chocolate Cream Mincemeat

Monday 10 7
Qty Ordered

Tuesday 15 9

How many additional minutes will Cindy need to produce her additional orders?
The solution to this problem can be done entering the data into a matrix and multiplying the
matrix. The order of the multiplication is important to this problem.
The matrix should be set up in the following way

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

10 15 10 7
15 15 X 15 9
Matrix A Matrix A

These matrices should be multiplied B X A. Your answer will be: 325 205
375 240
These are the additional minutes Cindy will need to produce the additional Pies.
Chocolate Cream pies - She will need an additional 325 min for the Chocolate Cream crust
and 205 min. for finishing it, for a total of 530 min.
Mincemeat pies - She will need an additional 375 min for making the crust of the mincemeat
and an additional 240 minutes to finish the pies, for a total of 615 min.

4. Compound Interest/annuities
The company would like to set up a sinking fund to cover the cost of a new oven, $6500. It is
anticipated one will be needed in 4 years.
A. How much should be deposited will need to be deposited annually into an account earning
7.5%interest, with the interest compounded monthly?
A = $6500 (value after payment)
n = 4 (number of payments)
i = (.075)periodic interest rate
R = amount each periodic payment
R = Ai
(1+i)n-1
R= (6500) (.075) 487.5
$1453.188
4
(1.075) -1 0.335469141
$1453.19 would need to be put into the sinking fund annually for 4 years at 7.5% to
accumulate the $6500 needed for a new oven.
B. Cindy enjoys making her pies and would like to invest $2000 of her profit per year into an
annuity for 5 years. She has the option of putting her money into an annuity that compounds

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

her interest annually at 5% or one that compounds the interest quarterly at 4.75%. What
would the value of each annuity be at the end of the 5 years? Which one should she choose to
yield the better return?
5% annually = $11,051.26 4.75% quarterly = $10240.34
R = .05 R= .0475/4 = .011875
Ay = 2000(1.05)4 = $2431.01 Ay = 2000(1.011875)4 = $2096.71
2000(1.05)3 = $2315.25 2000(1.011875)3 = $2072.10
2000(1.05)2 = $2205.00 2000(1.011875)2 = $2047.78
2000(1.05) = $2100.00 2000(1.011875) = $2023.75
2000(1) = $2000 2000(1) = $2000
Cindy would choose the annuity that paid 5% annually, its value is $810.92 more than the
annuity that pays 4.75% quarterly.
5. Payments/amortization of loans
When Cindy decided to purchase a commercial grade oven she wanted to establish her credit
for the business. The oven she decided on cost $ 6,500. She can borrow $7,000 ($500 for
delivery and installation) for 5 years at %5 interest annually at the credit union, or Jeff offered
to lend her the money and charge her 1.5% compounded quarterly.
A. Which option would cost her the least?
Credit Union Option

Scheduled payment $122.66 Monthly Payment

Scheduled number of payments 60
Actual number of payments 60
Total yearly payments $0.00
Total interest $859.78 Total Interest

LENDER NAME Credit Union

This option will compound the interest monthly

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

Jeff Option
P = $6500
M = 4 times compounded per yr.
R= .015 annual interest rate
I= .015/4= .00375 interest rate/period
N= 4x5 = 20 periods x term
A = future value $0
An = P(1+r/m)n = $7,005.264 Total amount paid
$6,500.00 Amount Borrowed
$ 505.26 Interest to Jeff
A loan from Jeff would cost her less financially at $505.26
The total interest to the credit union would be $859.78

B. What would the monthly payment to the credit union be? $122.66

C. After 2 years how much will I still owe on the credit union loan?

24 11/12/2019 $4,197.91 $122.66

Balance after 2 years

This comparison shows a loan from the Credit Union at 5% interest compounded annually vs
a 1.5 % quarterly interest loan from Jeff. Financing the oven through Jeff is financially better
for Cindy.
6. Set theory
Cindy was reviewing her orders and notice each day of the week had one pie purchased more
frequently than the others. The following days orders contained:
Set A = {Apple, Chocolate Cream, Mixed Berry}
Set B = {Apple, Chicken, Chocolate Cream. Mixed Berry}

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

A. If she was to offer a combination special what pie would she include if she wanted
to promote the pie?
A´ = {Chicken}
B. What pies were common to both days?
A ∩ B ={Apple}
C. If she only took orders on these two days what pies would she sell?
A  B = {Apple, Chicken, Chocolate Cream, Mixed Berry}
7. Counting with Ven Diagrams
Over the month Cindy tracked her orders. There were 22 orders for Chocolate Cream pies, 17
orders for Coconut Custard pies, and 12 orders for Chicken pies. 5 orders had both Chocolate
Cream and Coconut Custard. 7 orders were for Chocolate Cream and Chicken. One order was
for Chicken and Coconut Custard. Only one order included all three. 10 orders had none of
the mentioned pies.

A. How many pies did she bake this month?

9+5+10+7+1+1+3+10 = 46
B. How many orders did not include Coconut Custard?
9+7+3+10 = 29

46

Chocolate
9 5 10 Coconut Custard

7 1

3
Chicken

10

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

8. Permutations and combinations

Cindy would like to run a weekly special that consisted of 2 $18 pies and 2 $8 pies. She
currently sells 5 pies at $18 and 5 pies for $8.
A. In how many ways can Cindy choose the weekly special?
C (5,2) = 10 C (5,2)10 10 X10 = 100
The weekly special can be chosen in 100 different ways. Two pies can be selected from 5 pies
at $18 in 10 different ways. Two $8 pies can also be selected 10 different ways from 5 pies.
If we multiply the different ways we can select an $18a pie by the way we can select an $8 pie
we have 10 X10, there for we have 100 different ways Cindy can choose the weekly special.
B. Of the $18 pies 3 of them realize a $10+ profit. Only one of the $8 pies produce a profit
over $3. How many specials could she choose to retain a profit over $26 per order?

9. Probability
A. Cindy’s Pies has, 4 Berry, and 5 Meat pies to choose from. What is the probability a
customer ordering 2 pies will purchase 2 meat pies?
C (4,0) X (5,2) = 10 C (9,2) =36 10/36 = .277
There is a 28% chance the customer will purchase 2 meat pies.
B. Cindy has 12 extra pies for reduced sale 2 are Coconut Custard, the remaining 10 are
Vanilla Cream. What is the probability a customer will select 1 of the Coconut Custard?
2/12 = 1/6 = .166 or a 16.6% chance.

10. Summary Statistics

Because Cindy started out the business to supplement her income she recently faced the
dilemma of making this her primary source of income or closing. Cindy has really enjoyed
making her pies and chose to open full time during the first quarter of the year. To promote
her business and join in the holiday spirt she has decided to give away a free pie to one of her
loyal customers. She run this raffle for two weeks before drawing one luck customer’s name
for their choice of a free pie.

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

She has determined to give chances determined by the number of pies purchased. The
following table is posted for the Customers to view:

Holiday Pie Giveaway

You will receive chances to claim a pie in our giveaway based on the quantity of pies you
purchase over the next three weeks. The giveaway officially starts on November 15
and runs until December 3rd. The purchase requirements are as follows:
2 pies – 1 chance
3 pies – 2 chances
5 pies – 4 chances
The winning ticket will be drawn at the close of business on December 3rd. You will be
notified if your name is drawn. The winner’s name will be posted on our board. You will be
able to place an order for your pie anytime over the following 3 weeks. Good Luck!!
Enjoy Your Pies!

Over the course of three weeks Cindy had 100 customers. 30 of the customers received one
chance, 50 customers received 2 chances, and 10 customers received 4 chances.
A. What is the average number of tickets a customer received?
1 X 30 + 2 X 50 + 4 X 10 = 30+100+ 40 = 170 = 1.7 tickets per customer
100 100 100
B. What is the probability a customer who received 4 chances won?
P(A) = the number of events 4/100 = .04 or 4% chance
The number of outcomes
C. What is the probability a customer who received 2 chances Won?
P(A) = the number of events 2/100 = .02 or 2% chance
The number of outcomes

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Final Project
MAT 225
Cindy Naaykens
December 2, 2017

*None Such Classic Original Condensed Mincemeat

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