Question

The profit a company earns every month depends of the amount of the product sold, p, for $855 each and the amount spent in rent,utilities and other expenses, which always totals to $6,780. The CEO of the company earns 15% of this profit. How much does the CEO earn if the company sells 250 products in a given month?

Answer 1

$31,045.50

Explanation:

Revenue from sales = ($855/item)p

Expenses: $6,780

Revenue if p = 250 is R(250) = ($855/item)(250 items) = $213,750

Subtracting expenses, we get a profit of $206,970.

The CEO of the company earns 15% of this profit, or:

0.15($206,970) = $31,045.50