Question

Edurado started a business selling sporting goods.He spent $ 7500 to obtain hos merchandise , and it cost him $300 per week for general expenses.He earns $850 per week in sales. What is the minimum number of weeks Edurado will take to make a profit?

Answer 1

C) It will take 14 weeks for Edurado to make a profit.

Explanation:

The money spent on obtaining the merchandise = $ 7500

The general expense per week = $300

Let us assume Eduardo has to work for N weeks to break Even.

So, the general expense in N weeks = N x( Expense per week)

= N x ( $300) = 300 N

So, the total expense in N weeks = Money spent on merchandise + general expense

or, the TOTAL EXPENSE = $ 7500 + 300 N .... (1)

Now, the earning per week = $850

So, the total earning in N weeks = N x ( Earning in 1 week) = N x ( $850)

or, the TOTAL EARNING = 850 N .... (2)

Now, for N weeks ,

TOTAL EXPENSE = TOTAL EARNING

⇒ $7500 + 300 N = 850 N

or, 7500 = 850 N - 300 N = 550 N

⇒ N = 7500/550 = 13.63

So, number of weeks should at least be 13.63

Among the given options, N = 14 weeks is the most feasible answer.

Hence, it will take 14 weeks for Edurado to make a profit.