Jami is an accountant at a mid-sized firm and has been hired by an investor to make recommendations about five
local small businesses. These businesses are all in debt, but the investor sees potential in each idea. The investor wants
to know when each company is projected to break even and would prefer companies that will turn a profit within
the next 24 months. The investor secured the expense and revenue reports of each of the businesses to review.
Jami has created linear models to project the Cost and Revenue of each business and now must use the results to
finalize her findings. In each equation x represents months. What should her recommendation be? How do the
businesses rank?
Appster
(Technology Start-up)

Enrich
(Education Program)

Green Team
(Alternate Energy)

Southwest Fusion
(Restaurant)

Zoo to You
(Children’s Parties)
Cost y = 13124 + 3190x y = 69419 + 15384x y = 178420 + 64421x y = 42891 + 15387x y = 5420 + 9539x
Revenue y = 3586x y = 21954x y = 68419x y = 13174x y = 10381x