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Real-Life Activities

Real-Life Math -- Solution

1. What's your net income over the past 6 months?

Supplies: $12,542
Rent: $2,400
Advertising: $250
Insurance: $1,500
Storage: $1,600
Telephone and Hydro: $832

Net income = $35,400 - ($12,542 + $2,400 + $250 + $1,500 + $1,600 + $832)
Net income = $35,400 - $19,124
Net income = $16,276

Your net income over the past 6 months is $16,276.

2. How much did you make per hour?

Average per hour = $16,276 / [6 months x (40 hours a week x 4 weeks per month)]
Average per hour = $16,276 / [6 months x 160 hours per month]
Average per hour = $16,276 / 960 hours
Average per hour = $16.95

You made about $16.95 per hour.

"Math can make it all come together and show you if you are making a profit," says Bob Davis. "Learn it well. It is more important than I could ever tell you, so be prepared."


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