Question

A slushy representative convinces you to lease a machine for $200 per month. You discover that you are selling $900 per month of slushies at a margin of 30%. Are you making money on the machine?

Answer 1

Yes

Explanation:

30% of 900 is 270

the cost to lease the machine is 200

therefore 270-200=70

leaving you with 70 dollars profit

Answer 2

Yes

Explanation:

I'm selling $900 per month of slushies, with a margin of profit of 30% that is:

`P=\$900*(0.30)=\$270`

The machine has a cost of $200 per month, so the total profit is given by:

`Tp=\$270-\$200=\$70`

Each month I have a profit of $70.