Question

Laurie must set aside 25% of her revenue. For taxes and spend another $1300 per week and other expenses how much total revenue must she generate in order to clear a profit of $2000 per week

Answer 1

Answer: the revenue must be $4400

Explanation:

Let x represent the total revenue that she must generate in order to clear a profit of $2000 per week.

Profit = revenue - cost or total expenses. The expenses are

She set aside 25% of her revenue for tax. This means that the amount for tax would be 25/100 × x = 0.25x

She would spend another $1300 per week and other expenses.

Total expenses = 0.25x + 1300

Since she needs to generate $2000 profit per week,

Profit = revenue - total expenses

2000 = x - (0.25x + 1300)

2000 = x - 0.25x - 1300

2000 + 1300 = 0.75x

0.75x = 3300

x = 3300/0.75 = $4400