Question

The profit a company earns every month depends of the amount of product sold, p, for $855 each and the amount spent in rent, utilities and other expenses, which always totals to $6,780. The CEO of the company earns 15% of this profit. How much does the CEO earn if the company sells 250 products in a given month?

Answer 1

Answer:

$31,045.5

Explanation:

Revenue is the income generated by a company by selling a product/service

$R = n * p$

where R is revenue, n is number of products, p is the price of product

$R = 250 * 855$

$R = 213,750$

Profit is the financial gain of a company by taking the differential of the revenue and expenses

$P = R - E$

where P is the profit, R is revenue, E is expenses

$P = R - E$

$P = 213750 - 6780$

$P = 206,970$

Profit earned by the CEO is 15% of the total profit

$P_{CEO} = P * 15%$

$P_{CEO} = 206970 * 0.15$

$P_{CEO} = 31,045.5$

Answer 2

Income: p*855

Expenses: 6780

Profit = Income - expenses = 855p - 6780 = 855*250 - 6780 = 213750 - 6780 = 206970

CEO's earn = 15% * 206970 = 0.15*206970 = 31,045.5

Answer: 31,045.5