Hi All,

This question involves what's called "system math", which is an algebra concept. We need to translate the given prompt into a couple of algebra equations, then solve.

We're told that a total is based on a fixed amount + a percentage of a gross. From the two roles, we can create the following equations:

X = fixed amount

Y = % of the gross

X + Y% of (100 million) = 32 million

X + Y% of (60 million) = 24 million

We now have a "system" of equations (2 variables with 2 equations, so we CAN solve for X and Y).

Subtracting the second equation from the first gives us…

Y% of (40 million) = 8 million

Y% = 8/40 = 1/5 = 20%

Y = 20

Plugging back into either equation, we get…

X+ 20% of (100 million) = 32 million

X = 12 million

With the value of X and Y, we can now answer the question: To make at least 40 million, the minimum gross revenue must be…

12 million + 20% of (Z) = 40 million

20% of (Z) = 28 million

Z = 140 million

Final Answer:

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Rich

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