Question

Sam has been running his swimming pool cleaning business now for five years. He is considering enlarging his service area to a 100 mile radius, which would require two new offices in different parts of town. He would like to take out a business loan to cover the cost of expansion. The profits for Sam's business over the last 5 years are outlined in the table below. According to this information, what would be the best estimate for Sam to quote as expected profits in the next year in his new business plan?

a.
$66,477.28
b.
$66,933.60
c.
$72,003.91
d.
$72,957.63

Answer 1

Answer:

b $66,933.60

Step-by-step explanation:

Answer 2

The best estimate that Sam could quote as his expected profit in the next year is $66933.60.

What is a net profit?

Net profit is the amount of money your company generates after removing all tax charges and expenditures during a specific time period.

From the given information, the missing table that is showing the profits for Sam's business over the last 5 years is expressed as:

Business Year      Net Profit

1                          $43,502.25

2                         $47,417.45

3                         $51,685.02

4                         $56,336.68

5                         $61,406.98

By utilization of a regression graph for this table, we derive a quadratic equation:

y = 192.4493x² + 3318.1733x + 39998.214

By applying the 6-year value, we have:

y = 192.4493(6)² + 3318.1733(6) + 39998.214

y ≅ 66835.43

Learn more about net profit here:

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