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Profit is always calculated as revenue minus expenses. If a company’s expenses were $10 million, write an equation that expresses profit, P, (in millions of dollars) in terms of revenue, R, (in millions of dollars). Then, determine the profit when revenue is $25 million.

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Ashraf82

The equation that expresses profit, P, (in millions of dollars) in terms of revenue, R, (in millions of dollars) is P = R - 10

The profit is $15 million when revenue is $25 million

Step-by-step explanation:

The formula of the profit is P = R - E, where

  • R is the revenue
  • E is the expenses

If a company’s expenses were $10 million, wee need to write an equation that expresses profit, P, (in millions of dollars) in terms of revenue, R, (in millions of dollars) and then find the profit when revenue is $25 million

∵ P is the profit in millions of dollars

∵ R is the revenue in millions of dollars

∵ The expenses E were $10 million

∵ Profit = Revenue - Expenses

∴ P = R - 10

The equation that expresses profit, P, (in millions of dollars) in terms of revenue, R, (in millions of dollars) is P = R - 10

∵ The revenue R = $25 million

∵ P = R - 10

- Substitute the value of R in the equation

∴ P = 25 - 10

∴ P = 15

∴ The profit is $15 million

The profit is $15 million when revenue is $25 million

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