Question

The equation below was identified as representing the relationship between dollars spent

on advertising, X, and profit, P, for a particular company. According to this equation, at

least how much should the company spend on advertising in order to avoid losing

money?

P = 1.5X - 30,000

Answer 1

The company should spend 20,000 dollars on advertising in order to avoid losing money.

Explanation:

You know that the relationship between dollars spent on advertising X, and earnings P, for a particular company is:

P= 1.5* X -30,000

You want to know how much money the company should spend on advertising so that the company doesn't lose money. That is, the company has no losses but no profits. So this means that P must have a value of 0.

So, replacing:

0= 1.5*X - 30,000

Solving:

30,000= 1.5*X

30,000÷ 1.5= X

20,000= X

The company should spend 20,000 dollars on advertising in order to avoid losing money.