Question

Kim's business earns $10,000 per month. Kim's non-employee expenses are $3,000 per month. If Kim wants $2,000 in profit per month, how many employees can Kim have if each employee costs $1,000 per month?

Answer 1

5

Explanation:

Revenue - profit = expense

10000 - 2000 = 8000

8000 = 3000 + 1000n

1000n = 5000

n = 5

Answer 2

Kim's business earns $10,000 per month.

Kim's non-employee expenses are $3,000 per month.

If Kim wants $2,000 in profit per month, then the maximum amount Kim can spend for employee:

10000 - 3000 - 2000 =5000

If each employee costs $1,000 per month, Kim can recruit 5000/1000 = 5 as the maximum number of employees.

Hope this helps

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