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22 February, 17:28

Jose wants to start a restaurant and is writing a business proposal. His rent is $1,000 per month. The monthly operating costs are equal to the wages paid to the employees, w, plus the business overhead, k. Jose wants his monthly sales revenue, x, to be 4 times greater than the operating costs.

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  1. 22 February, 17:32
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    Revenue = 5 (1000 + w + k)

    Step-by-step explanation:

    Lets calculate expenses first

    rent = $1000

    wages = w

    overhead cost = k

    Total cost = rent + wage + overhead

    Total cost = 1000 + w + k

    Given Jose wants his monthly sales revenue, x, to be 4 times greater than the operating costs

    Let revenue be R

    Thus, putting the statement mathematically

    revenue - total cost = 4 * operating cost

    R - (1000 + w + k) = 4 (1000 + w + k)

    R = 4 (1000 + w + k) + (1000 + w + k)

    R = 5 (1000 + w + k)

    Thus, revenue should be 5 (1000 + w + k).
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