Question

Mark and his friend Tricia are in a partnership. Their business is an online retail store and is competing well with other similar businesses. They believe the business should start making a profit soon. Their annual operating cost is represented by a=$8000+6000b and their annual revenue (a) is represented by a=$10,000b. b represents the number of years they stay in business. How many years will it take for their business to become profitable?

Answer 1

Answer: To determine the number of years it will take for Mark and Tricia's business to become profitable, we need to find the point at which their revenue exceeds their operating costs. We can set their annual revenue equal to their annual operating costs and solve for b:

10000b = 8000 + 6000b

4000b = 8000

b = 2

Therefore, it will take 2 years for their business to become profitable, assuming their revenue continues to increase at a constant rate and their operating costs remain the same.

Explanation: To determine the number of years it will take for Mark and Tricia's business to become profitable, we need to find the point at which their revenue exceeds their operating costs. We can set their annual revenue equal to their annual operating costs and solve for b:

10000b = 8000 + 6000b

4000b = 8000

b = 2

Therefore, it will take 2 years for their business to become profitable, assuming their revenue continues to increase at a constant rate and their operating costs remain the same.