Question

The price to purchase a particular model of new home is $405,000. Assume the cost to a developer to build this home is $165,000. If profit is sale price minus cost, what is the profit on one house? What is the profit on 10 houses? What does the linear model look like for the profit on selling number of these homes? (Assume they have identical cost to build and identical price to purchase)

Answer 1

Explanation:

Assuming there's no tax involved, the profit on one house is $405,000 - $165,000.. which equals $240,000.

Two houses would bring a profit of $480,000 ($240,000 x 2)

Zero houses is just $0 profit.

Ten houses would be ($240,000 x 10) which would be $2,400,000

You can graph this with the equation y= 240,000x