Question

what is the equation for determining revenue?

Answer 1

in general terms, it would be:
Income - Expenses = Revenue

Answer 2

thank you agreene. is income the same as the profit?

Answer 3

If i remember correctly, yeah

Answer 4

It's been a LONG time since I did any economics though

Answer 5

oh ok. i have a word problem here and i am so confused.

Answer 6

supposedly, i opened a pizza restaurant. based on surveys conducted on my area, i determined that it is feasible to sell my specialty pizzas for $15. the cost for making the pizzas includes a fixed cost of $55 and labor cost of $4 per pizza.

Answer 7

So, your profit (income) would be 15 per pizza, your costs would be 55 and 4 per pizza
or,
profit: 15x
costs: 55+4x
so, revenue would be:
R=15x-(55+4x)
R=15x-55-4x
R=(15-4)x-55
R=11x-55
Or, $11 per pizza -$55

Answer 8

i have to establish an equation for revenue, an equation to determine the total cost and the break even.

Answer 9

oh i see. the income is the profit.

Answer 10

So, above, I did most of that... to find the break even point, Revenue should be 0 and then you can solve for how many pizzas (x) you need to sell to get there:
0=11x-55

Answer 11

ok. i will try. give me a sec. im very slow with math :)

Answer 12

0 = 11x -55
0 = 11x -55 +55
55/11 = 11x/11
5 = x, x = 5

??

Answer 13

Yep!
So, now we know... after you sell 5 pizzas you will break even, and everything after that is revenue

Answer 14

yey!! i like you!

Answer 15

lol, no problem.

Answer 16

ha ha one more!! don't leave me!

Answer 17

would it be the same equation for determining total cost?

Answer 18

total costs is just the part i called costs...
The word problem tells you that you have two expenses:
The first: an upfront $55 cost
The second: a $4 per pizza cost.
So, the total cost would be both of those together, if we call "per pizza" x then:
55
+4x
----
55+4x = Total Costs

Answer 19

ah. i kinda realize that after i typed it to you. i read the problem again and the costs is given

Answer 20

Math is tough

Answer 21

Math is a lot like a different language, once you understand the fundamentals (which is what you are doing)... it starts to come easier, and you are able to figure stuff out that you would never be able to do otherwise.

Answer 22

ask me anything about human anatomy, i can help you :)

with the profit / loss:

Answer 23

I'm horrible with human anatomy... even though I'm a cancer researcher, lol... I can tell you all about DNA though :)

Answer 24

determine the profit if 500 specialty pizzas are sold. how many specialty pizzas would need to be sold to make a profit of $1,100? how many specialty pizzas would i need to sell if i wanted to make a profit greater than $1595? the last one is inequality right?

Answer 25

my equation would go: P = revenue - cost

Answer 26

I'm trying to remember the terminology, I think profit is the same as revenue, I might be wrong though...
and yeah the last one is an inequality

Answer 27

I think I confused the two earlier, and referred to revenue as profit and profit as revenue...

Answer 28

I said:
profit: 15x
costs: 55+4x
revenue = 11x-55

but I think it should be
Revenue = 15x
Costs = 55+4x
Profit = 11x-55

Answer 29

no problem i can fix that. i was lost there too before we chatted.

Answer 30

I always had problems with the words that Economics/Accounting uses... because they aren't all the same as what normal people use

Answer 31

hey at least you know the steps to do them.

Answer 32

what is the equation for the determination total cost?