Flossmoor Inspection Service specializes in inspecting cars that have been retur

Question

Flossmoor Inspection Service specializes in inspecting cars that have been returned to automobile leasing companies at the end of their leases. Flossmoor's charge for each inspection is $50; its average cost per inspection is $15. Tony Lomangeno, Flossmoor's owner, wants to expand his business by hiring another employee and purchasing an automobile. Thefixed costsof the new employee and automobile would be $3,000 per month. How many inspections per month would the new employee have to perform to earn Lomangeno a profit of $1,200?
inspections

Explanation / Answer

let the number of inspections be x
profit per inspection = 50-15
fixed cost = 3000
required profit = 1200

1200=x*(50-15)-3000

4200=35x

x=120

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