Question

Ms. Watts is a famous motivational speaker. She travels across the country by jet and gives an average of ten presentations a week

She gives her speeches in auditoriums that are always full and hold an average of 1000 people each. She charges $40 per person

at each of these speeches. Her average expenses for each presentation, including renting the auditorium, are about $15,000. The

cost of meals, motels, jet travel, and support personnel total $75,000 per week. How many weeks will Ms Watts need to travel if she

wants to earn $1,400,000 per year?

Answer 1

5 weeks

Explanation:

We are told that the auditorium holds an average of 1000 people each.

And that she charges $40 each.

Thus;

Total income for each speech is;

1000 × 40 = $40000

Since she gives an average of 10 presentations each week.

Total income per week = 10 × 40000 = $400,000

Now,the expenses she makes for each speech weekly is;

Renting auditorium = $15000

Motel, jet expenses, support personnel = $75000

Thus,

Total expenses per week = 15000 + 75000 = $90000

Now, total profit per week is;

P_weekly = Total income per week - Total expenses per week

P_weekly = $400000 - $90000

P_weekly = $310000

There are 52 weeks in a year, thus, profit in a year is;

P_yearly = 52 × 310000 = $16120000

Now, we want to find out how long it took her to make $1,400,000 a year.

We know that;

$16120000 was achieved in 52 weeks

Thus;$1,400,000 will be achieved in;

(1400000 × 52)/16120000 = 4.52 weeks approximately 5 weeks.