Jordan is developing a business plan for a residential building inspection service he may start. Rent and utilities for the office will cost $1,500 per month. The fixed costs for a vehicle would be $325 per month. He estimates that the variable office costs will be $100 per inspection and $50 per inspection for commuting. Jordan will also spend $150/month to lease a computer and $275/month for advertising.
a) If he charges $275/inspection, how many inspections before he can start making a profit?
b) What monthly revenue will he be making at break-even?
c) What will be his profit/loss he makes an average of 15 inspections per month?
d) How many inspections per month should he make in order to be able to have a salary of $5,000/month?