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A food delivery company charges on average a delivery fee of $5 per order (including food and shipping) and has monthly fixed costs of $600. If the average cost of each meal delivered that is revenue for the company is $10 and the company has a monthly profit of $800, how many orders must they deliver per month?

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Answer to a math question A food delivery company charges on average a delivery fee of $5 per order (including food and shipping) and has monthly fixed costs of $600. If the average cost of each meal delivered that is revenue for the company is $10 and the company has a monthly profit of $800, how many orders must they deliver per month?

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Esmeralda
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94 Answers
* Delivery fee per order is $5 (including food and shipping) * Fixed costs per month are $600 * Average cost of each meal (revenue per order) is $10 * Monthly profit is $800 * Let x = number of orders per month * Revenue = x * $10 * Costs = x * $5 (delivery fees) + $600 (fixed costs) * Profit = Revenue - Costs * $800 = x * $10 - (x * $5 + $600) * $800 = x * $10 - x * $5 - $600 * $800 = 5x - 600 * $1400 = 5x * x = 280 Therefore, the number of orders per month must be 280.

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