Question

It costs Chevy $20,000,000 to develop and market a new model of a car. The company sells each car for $25,000, How many cars

must Chevy sell to make more than
$5,000,000 in profits?

Answer 1

I believe it to be 1000 cars. Please look at solution to check if I did it the way your problem wants you to do it.

Explanation:

Since Chevy needs to make 5,000,000 in profits, earns 25,000 per car, and had invested 20,000,000, we can set an equation with x being the number of cars:

5,000,000 = 25,000x -20,000,000

Notice how 20,000,000 is negative. This is because chevy starts with a negative amount of money (as they just spent it) and are wanting to earn it back. Anyway, lets solve this.

25,000,000=25,000x

x=1,000

we can see that chevy needs to sell more than 1000 cars to make a profit, however I'm unsure of the 25,000 part. This answer is assuming that they make 25,000 profit for each car.