Question

Kamal's bakery recently spent a total of $700 on new equipment and their average hourly operating costs are $12. Their average hourly receipts are $40. The bakery will soon make back the amount it invested in equipment. How many hours will that take?

Answer 1

Answer:

25 hrs

Step-by-step explanation:

#First, we calculate the average earnings per hour by subtracting the running costs from receipts:

$Net \ Hourly \ Earnings=Receipts -Running \ Costs\\\\=40-12\\\\=28$

Let x be the number of hours it takes to fully recover the investment costs. We divide the investment cost by net receipts to solve for x;

$x=\frac{I}{Receipts}\\\\\\=\frac{700}{28}\\\\=25\ hrs$

Hence, it takes 25 hrs to repay the investment cost.