Sales (Linear Function)

MathBane

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A real estate agency has fixed monthly costs associated with rent, staff salaries, utilities, and supplies. It earns its money by taking a percentage commission on total real estate sales. During the month of July, the agency had total sales of $832,000 and showed a net income (after paying fixed costs) of $15,704. In August total sales were $326,000 with a net income of only $523.

(a) Use a formula to express net income as a linear function of total sales. Let N be the net income in dollars, and let s be the total sales in dollars. (Round the terms to two decimal places.)

N(s) =

(I found slope to be 0.03, but when I tried to find the equation of a line I got it wrong.)


(b) What percentage commission does the agency take on the sale of a home? (Round your answer to two decimal places.)

(...How would I even begin to find this?)
 
s = sales
N = net income

Points we know

N = 326,000 s = 523
N = 832,000 s = 15,704

The slope you calculated seems correct to me.
m = 0.03

The equation of our line is N = ms + b

(a) Use one point and your slope to solve for b in order to get the equation of the line.

(b) This is the slope. Please try to explain why by explaining the meaning of the slope.
 
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