Question 540867
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:
{{{s=c+p}}} or for each $1 of sales {{{1=c+p}}}
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
{{{1=.35+p}}}
{{{p=1-.35=.65}}}
So we know that $0.65 of every dollar of sales is profit. How do you express that as an equation?
{{{p=0.65*s}}}
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):
{{{p=0.65*s}}}
{{{20000=0.65*s}}}
{{{s=20000/.65=30769.23}}}
Therefore, if 35% of your sales cover your expenses, you would need $30,769.23 of sales to earn $20,000 profit.
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.
{{{SalesNeeded=(DesiredProfit)/(ProfitPercentage)}}}