Profit and Income

Please view this tutorial and answer the follow-up questions on loose leaf to

turn in to your teacher.

Basics•Income: the amount of money you earn by selling items

•Profit: the money you keep after paying your expenses

Rule:Profit = Income - Expenses

Example

FMLA is selling hand sanitizer as a fund raiser for their club. The materials to make the hand sanitizer costs them $120. They plan to sell the bottles for $2 each. Write a rule for the income and profit.

First, we need to find our important information.

Example

FMLA is selling hand sanitizer as a fund raiser for their club. The materials to make the hand sanitizer costs them $120. They plan to sell the bottles for $2 each. Write a rule for the income and profit.

The materials cost the $120.

This is our expenses.

Example

FMLA is selling hand sanitizer as a fund raiser for their club. The materials to make the hand sanitizer costs them $120. They plan to sell the bottles for $2 each. Write a rule for the income and profit.

They are selling the bottles for $2 each.

ExampleImportant Info:Materials costs $120Selling bottles for $2 each

The first thing we need to identify our variables.

The things that change for this situation will be Income, Profit, and the number of bottles sold.

ExampleImportant Info:Materials costs $120Selling bottles for $2 each

I = IncomeP = ProfitB = Number of bottles sold

Since we’re solving for income, our equation will start out

I =

ExampleImportant Info:Materials costs $120Selling bottles for $2 each

I = IncomeP = ProfitB = Number of bottles sold

How will the income change for every bottle sold?

I =

ExampleImportant Info:Materials costs $120Selling bottles for $2 each

I = IncomeP = ProfitB = Number of bottles sold

The income will increase by $2 for each bottle sold, so we write…I = I = 2B

ExampleImportant Info:Materials costs $120Selling bottles for $2 each

I = IncomeP = ProfitB = Number of bottles sold

Now, can solve for the profit. Remember, the general rule for profit is Income - Expenses

ExampleImportant Info:Materials costs $120Selling bottles for $2 each

I = IncomeP = ProfitB = Number of bottles sold

Profit = Income - ExpensesP 2B 120

Follow Up Questions

Answer the following questions on loose leafand hand them in to your teacher.

Follow Up QuestionsMr. Nelms bought a pack of 200 pencils for $5. He sells these pencils to kids that aren’t prepared for class for $.25 each.

1. What are the expenses for this problem?2. Using n for the number of pencils and I for

income, write a rule to model the income for this situation.

3. Using n for the number of pencils and P for profit, write a rule model the profit for this situation.