Concept explainers
Reminder Round all answer to two decimal places unless otherwise indicated.
Real Estate Sales 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
a. Use a formula to express net income as a linear function of total sales. Be sure to identify what the letters that you use mean.
b. Plot the graph of net income and identify the slope and vertical intercept.
c. What are the real estate agency’s fixed monthly costs?
d. What percentage commission does the agency take on the sale of a home?
e. Find the horizontal intercept and explain what this number means to the real estate agency.
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