Question5. Jeremy operates a driving school. Last year, he earned . He spent on business expenses. a) What was Jeremy's net income? b) A hybrid car would run on electricity as well as gasoline. How could using a hybrid car increase Jeremy's profit? c) Do you agree that buying a hybrid car would help Jeremy's profit? Explain. d) What are some other ways that a driving school could increase its profit?
Studdy Solution
STEP 1
1. Jeremy's net income is calculated by subtracting business expenses from total earnings.
2. A hybrid car may reduce fuel costs, potentially increasing profit.
3. The decision to buy a hybrid car should consider cost savings versus purchase cost.
4. Other profit-increasing strategies may include increasing revenue or reducing costs.
STEP 2
1. Calculate Jeremy's net income.
2. Analyze how a hybrid car could increase profit.
3. Evaluate the decision to buy a hybrid car.
4. Suggest other ways to increase profit.
STEP 3
Calculate Jeremy's net income by subtracting his business expenses from his total earnings.
STEP 4
Perform the subtraction to find the net income.
STEP 5
Consider how a hybrid car could increase profit by reducing fuel costs. Hybrid cars typically use less gasoline, which could lower operating expenses.
STEP 6
Evaluate whether buying a hybrid car would help Jeremy's profit. Consider the initial cost of the car, potential fuel savings, and any additional maintenance costs.
STEP 7
Suggest other ways to increase profit for a driving school, such as:
- Increasing the number of students.
- Offering additional services or packages.
- Reducing other operational costs.
- Implementing marketing strategies to attract more customers.
The solution to part (a) is:
For parts (b), (c), and (d), consider the analysis and suggestions provided.
Was this helpful?
