What is the standard form of this equation.

Question

Jesse and Lisa start a business tutoring in math. They rent an office for $200 per month and charge $15 per hour per student. If they have 10 students each week for one hour per week, how much profit do they make per month?

Answer 1

Profit P=R-C where R is revenue from services and sales and C is cost.

In a month how many students do they average? If we say there are 4 weeks in a month we are talking of 28 days. But if we use a year as the basis of calculation, 1 year=12 months=52 weeks.

So we can work out the profit per year and then divide by 12 to find out the average monthly profit.

In one year the rent is 12*200=$2400.

In one year they average 52*10=520 students which brings in revenue of 520*15=$7800.

So the profit for a year is 7800-2400=$5400.

The profit per month is 5400/12=$450.

If we had calculated on a monthly basis and used 4 weeks=1 month, the profit would have come out as $400 a month.