Question

You start a pool cleaning business in the neighborhood. You start

your business with $1,000 of savings. The table shows the expenses
and revenue after one week. At this rate, how many weeks will your
savings last?
Item
Cleaning Chemicals
Brushes and Towels
Transportation 10
Income ($15 per pool)
Flyers for Advertising
Expenses
$31
$17
$10
$12
Revenue
$30

Answer 1

At this rate of expenses and revenue after one week, the savings will last for 35 weeks.

Expenses and Revenue after one week:

Items Expenses Revenue

Cleaning Chemicals $31

Brushes and Towels $17

Transportation $10

Income ($15 per pool) $30

Flyers for Advertising $12

Fixed cost (Flyers) = $12

Variable costs = $58 ($31 + $17 + $10)

Contribution margin per week = -$28 ($30 - $58)

Capital (savings) = $1,000

The number of weeks the savings will last = ($1,000 - $12) ÷ $28 = 35.3 weeks

Thus, the savings will last approximately 35 weeks.