Question 798242: A real estate agency has fixed monthly costs associated with rent, staff salaries, utilities, and supplies. It earns its money by taking a percentage commission on total real estate sales. During the month of July, the agency had total sales of $834,000 and showed a net income (after paying fixed costs) of $15,682. In August total sales were $326,000 with a net income of only $521. Find the horizontal intercept.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A real estate agency has fixed monthly costs associated with rent, staff salaries, utilities, and supplies. It earns its money by taking a percentage commission on total real estate sales. During the month of July, the agency had total sales of $834,000 and showed a net income (after paying fixed costs) of $15,682. In August total sales were $326,000 with a net income of only $521. Find the horizontal intercept.
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The instructions do not make it clear whether you a calculating gross or net income.
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Assuming you want net income you get the following::
You have 2 points:: (1,15,682), (2,521)
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slope = (15682-521)/-1 = -15161
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Equation::
521 = -15161*2 + b
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b = 30,843 (the horizontal intercept)
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Cheers,
Stan H.
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