jessie borrowed $58700 from the bank to start a small business. she rented a shop for $1800/month. purchased…

jessie borrowed $58700 from the bank to start a small business. she rented a shop for $1800/month. purchased machinery, materials, and other items to start up the business for $5000, and leased a work truck for $442.10/month with a $3000 down - payment. jessie also needs to hire 5 employees for her business and she is paying them $18.62/hr. if she thinks it will take 3 months before the business will start to make any money, will she be able to cover her expenses for 3 months. give your answer as a positive value if the money will last, and give the answer as a negative value indicating the amount of additional money needed to make it 3 months. note: assume each employee works a normal 40 hour per week schedule and that a month is 4 weeks. round to the nearest cent. your answer:

jessie borrowed $58700 from the bank to start a small business. she rented a shop for $1800/month. purchased machinery, materials, and other items to start up the business for $5000, and leased a work truck for $442.10/month with a $3000 down - payment. jessie also needs to hire 5 employees for her business and she is paying them $18.62/hr. if she thinks it will take 3 months before the business will start to make any money, will she be able to cover her expenses for 3 months. give your answer as a positive value if the money will last, and give the answer as a negative value indicating the amount of additional money needed to make it 3 months. note: assume each employee works a normal 40 hour per week schedule and that a month is 4 weeks. round to the nearest cent. your answer:

Answer

Explanation:

Step1: Calculate total monthly employee - cost

Each employee works 40 hours a week and there are 4 weeks in a month. Each employee's hourly wage is $18.62. For 5 employees, the monthly cost is $18.62×40×4×5. $18.62×40×4×5=18.62×800 = 14896$

Step2: Calculate total monthly business - related costs

The monthly cost of the work - truck is $442.10, the monthly business payment is $5000, and assume no other variable costs for simplicity. The total monthly business - related cost is $442.10 + 5000=5442.10$

Step3: Calculate total monthly costs

The total monthly cost $C$ is the sum of the employee cost and the business - related cost. So $C = 14896+5442.10=20338.10$

Step4: Calculate total income in 3 months

The monthly income is $1800. In 3 months, the total income $I=1800×3 = 5400$

Step5: Calculate total initial investment

The initial investment for setting up the business is the sum of the down - payment for the truck ($3000) and the loan amount ($58700). So the initial investment $P=3000 + 58700=61700$

Step6: Calculate the additional money needed in 3 months

Let $x$ be the additional money needed. The total cost in 3 months is $20338.10×3=61014.3$. The total income in 3 months is $5400$. $x=61014.3−5400=55614.3$

Answer:

$55614.30$