document.write( "Question 540867: if my current sales for the year is $175,000 and I need 35% to cover my overhead and expenses....If I want to increase my gross profit dollars by $20,000 how much do I have to increase my sales by? \n" ); document.write( "

Algebra.Com's Answer #353956 by jpg7n16(66) $\"\"$ $\"About$

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Per the question, here's what we know. Essentially, every dollar of sales (let's call that \"S\") can be broken into 2 parts: the amount it cost to make (let's call that \"C\") and the amount of profit made (let's call this one \"P\"). Turn that into an equation:
\n" ); document.write( " $\"s=c%2Bp\"$ or for each $1 of sales $\"1=c%2Bp\"$
\n" ); document.write( "Since the problem tells you the cost is $0.35 of every dollar, all you really need to do is plug in .35 for C
\n" ); document.write( " $\"1=.35%2Bp\"$
\n" ); document.write( " $\"p=1-.35=.65\"$
\n" ); document.write( "So we know that $0.65 of every dollar of sales is profit. How do you express that as an equation?
\n" ); document.write( " $\"p=0.65%2As\"$
\n" ); document.write( "The question is asking, what amount of sales (S) will give you a profit (P) of $20,000. So plug what you know into this equation, and solve for sales (S):
\n" ); document.write( " $\"p=0.65%2As\"$
\n" ); document.write( " $\"20000=0.65%2As\"$
\n" ); document.write( " $\"s=20000%2F.65=30769.23\"$
\n" ); document.write( "Therefore, if 35% of your sales cover your expenses, you would need $30,769.23 of sales to earn $20,000 profit.
\n" ); document.write( "That's the long explained version. The short easy version for next time - just take the profit you need, and divide by the profit percentage.
\n" ); document.write( " $\"SalesNeeded=%28DesiredProfit%29%2F%28ProfitPercentage%29\"$ \n" ); document.write( "

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