Cost & Revenue Equations
Future Predictions
Will it be Profitable?
Breakeven Point
100
You opened a business for $2000. The business makes $4500 every month and you spend $3600 on employee wages, and materials.
Write the cost equation for your business.
y = 3600x + 2000
100
After 4 months, how much will a business earn if the revenue equation for the business is
y = 3400x + 2000
y = 3400x + 2000
y = 3400(4) + 2000
y = 15600
100
A business spends $200 a month on expenses and makes $400 in sales every month. Will this business be profitable?
Yes. The growth rate for revenue is larger than the growth rate for cost
100
The graph below shows the cost and revenue equations for a business. When does the business reach the breakeven point?
5 months
200
You opened a business for $2000. The business makes $4500 every month and you spend $3600 on employee wages, and materials.
Write the revenue equation for your business.
y = 4500x
200
After 20 months how much money will a business earn if the revenue equation for the business is
y = 500x + 300
y = 500x + 300
y = 500(20) +30
y = 10030
200
Edwin spends $15000 to open a business. Each month his business makes $500 in sales, and Edwin spends $750 for expenses.
Is Edwin's business profitable?
No. He spends more in costs than he earns in revenue
200
What is the breakeven point for the cost and revenue equations below?
There is no breakeven point
300
A business's monthly costs are represented by the equation y = 4000x + 4500.
How much money did it cost to open the business?
$4500
300
How many months will it take a business to earn $1680 if the revenue equation for a business is
y = 560x
3 months
300
Cost: y = 5500x + 3000
Revenue: y = 5500x
Will this business be profitable?
No. The growth rate for revenue and cost are the same, therefore the business will neither make any money nor lose any money
300
Find the break even point for the cost and revenue equations below
Cost: y = 5000x + 300
Revenue: 300 + 5000x
The equations are the same, therefore there are an infinite amount of breakeven points
400
Juan opens a business. He spent $5400 to open the business and spends $2300 each month on employee wages, bills, and materials. His business makes $2500 each month.
Write the equation for Juan's business's costs and an equation for revenue
Cost: y = 2300x + 5400
Revenue: y = 2500x
400
How many months will it take a business to earn $94000 if the revenue equation for a business is
y = 7800x + 400
12 months
400
Cost: y = 6000x +3300
Revenue: 3300 + 6000x
Will this business be profitable?
No. The revenue and cost equations are the same, therefore this business will not make any money or lose any money
400
Find the breakeven point by solving the system of equations below:
y = 300x + 70
y = 300x
No breakeven point. The equations are parallel
500
Emily opened a business for $20000. Her business makes $7800 a month and she got $25000 in money from investors to start her business. She spends $4000 a month on wages and bills.
Write both the cost equation and revenue equation for Emily's business
Cost: y = 4000x + 20000
Revenue: y = 7800x + 2500
500
Rodrigo spent $30000 to open a Dutch Bros franchise. His franchise makes $5400 a month. How long will it take him to make back the $30000?
5.6 months
500
How much money would Jesse lose if the cost equation for their business is y = 300x + 3500 and the revenue equation for their business is y = 300x + 1000?
Jesse will lose $2500
500
Find the breakeven point by solving the system of equations below:
y = 5600x + 400
y = 4200x + 12000
6 months