Problem 54 - Algebra 1: Concepts and Skills

Question

A company had the following profits and losses over a 4 -month period: April, 3,515 dollars May,5,674 dollars June,8,993 dollars July,907 dollars.Did the company make an overall profit or loss? Explain.

Step-by-Step Solution

Answer

After calculating the overall result, if the total is greater than zero, the company made a profit. If it's less than zero, the company incurred a loss. But in this case, no losses were reported, so the company made a profit. The exact amount can be determined by adding the monthly sums together.

Step 1: Identify the monthly profits/losses

April's profit is 3,515 dollars, May's profit is 5,674 dollars, June's profit is 8,993 dollars and July's profit is 907 dollars.

Step 2: Sum up the profits

Add up all the profits for the four months. This is done by the following mathematical expression: 3,515 (April) + 5,674 (May) + 8,993 (June) + 907 (July)

Step 3: Calculate the overall profit or loss

After implementing the calculation from Step 2, the sum indicates the total profit or loss over the described four-month period.

Key Concepts

Monthly Profit

To understand monthly profit, it's crucial to recognize it as the financial gain a company experiences over a particular month. Every month can either end with a profit, meaning earnings exceed expenses, or a loss, where expenses surpass earnings. In our company case, we see different profit figures for four consecutive months:

• April had a profit of 3,515 dollars.
• May saw a higher profit of 5,674 dollars.
• June reached the peak with a profit of 8,993 dollars.
• July ended with a smaller figure of 907 dollars.

This data helps determine how each month contributes to the company's financial health. It's important to look at these individual numbers, as they tell us whether a company is consistently earning more than it spends month by month.
Understanding this is the first step before moving on to larger financial summaries.

Summing Up Profits

After identifying individual monthly profits, the next step is summing them up to get a clearer financial picture. This involves adding up all the profit numbers from each month to calculate the overall figure. The calculation can be shown as:\[3,515 + 5,674 + 8,993 + 907\]By adding these amounts, we compile the total revenue accumulated over the four months. This process aids in understanding the cumulative effect of the monthly profits. It's like fitting the small pieces of a puzzle to see the complete image of the company's financial status over a period. Summing up profits helps businesses track growth patterns, predict future earnings, and make informed decisions on investments or expansions.

Overall Profit or Loss

After summing up the monthly profits, the final task is determining whether the company experienced an overall profit or loss. This step involves analyzing the total sum from the previous section. If the cumulative amount is positive, it indicates a profit; if negative, it indicates a loss. In our example:\[3,515 + 5,674 + 8,993 + 907 = 19,089\]The result of 19,089 dollars is a positive figure, suggesting that the company made an overall profit over the four months. Understanding this final concept is crucial as it represents the net financial outcome of the business activities over a period. Regular assessments of overall profits or losses help companies adjust strategies, control costs, and enhance their economic sustainability in the long run.