The piper Ad Agency claims that for every dollar spent on magazine advertising, monthly profit will increase by $5.00. You presently spend $5,000 on magazine advertising and your monthly profit is $12,000. What will be your profit if you spend $7500 on magazine advertising?
I don't understand at all how to solve this. Any advice?!
2500 * 5 = ?
Add this answer to your profit and subtract 7500.
Thanks! So how did u get the 2500?
7500 - 5000 = 2500
To solve this problem, we need to use the given information to determine the relationship between magazine advertising spending and monthly profit. According to the Piper Ad Agency, for every dollar spent on magazine advertising, the monthly profit increases by $5.
Let's break down the problem step by step:
1. Identify the relationship: The problem states that spending on magazine advertising has a 1 to 5 ratio with monthly profit. This means that for every $1 spent, profit increases by $5.
2. Calculate the profit increase per dollar: Since the ratio is 1:5, this means that for every dollar spent on magazine advertising, the profit will increase by $5. Therefore, the profit increase per dollar spent is $5.
3. Find the profit increase for the given advertising spending: In the problem, you currently spend $5,000 on magazine advertising, and your monthly profit is $12,000. To find the profit increase, multiply the advertising spending by the profit increase per dollar: $5,000 * $5 = $25,000.
4. Add the profit increase to the current profit: To find the new profit, add the profit increase to the current profit. $12,000 + $25,000 = $37,000. This means that if you spend $5,000 on magazine advertising, your new monthly profit will be $37,000.
5. Determine the profit for spending $7,500 on magazine advertising: Now we need to calculate the new profit if you spend $7,500 on magazine advertising. Using the same formula, multiply the advertising spending by the profit increase per dollar: $7,500 * $5 = $37,500.
Therefore, if you spend $7,500 on magazine advertising, your new monthly profit will be $37,500.
In summary, the profit will be $37,500 if you spend $7,500 on magazine advertising.