Question

Suppose a firm loses $4,000 in its first month, but increases its profit by $575

each month for the first year. Find the firm's total profit or loss in the first
year.
O Loss of $10,050
O Loss of $2,250
O Profit of $2,325
O Profit of $85,950

Answer 1

profit of $2325

Explanation:

so a loss of $4000 in the first month, with profit of $575 each month. let's say a year have 12 months, first month with loss, the other 11 months with profit. so, $575 x 11 months = $6325. $6325 is the amount for 11 months with $575 profit. take $6325 and minus with $4000 and you will get $2325, which is the profit for the first year.