I am trying to figure out a settlement amount.

Question

If I have $1.226M in expenses plus a 40%fee, how much would the settlement amount need to be to net 50% profit.  example below.

 

Settlement amount 12,269,050 - this value is not known

             40% fee     4,907,620 - value is only known if settlement known

Client expenses        1,226,905 - this value is known

          50% profit     6,134,525 - this value is always 50% of settlement.   

 

Need a formula that will calculate the settlement amount everytime with 50% profit.

 

Answer 1

f(x) =

A fee that is 40% of 50k expenses??

 

wow. That's a pretty large fee. Anyways

 

total charges/bill:

 1(50k) + 0.4(50k) = 1.4(50k) = 70k

 

Do the same thing with your added 50% profit

 

Bill + your fee/profit:

1(70k) + 0.5(70k) = 1.5(70k) = 105k

 

To write it as one equation with

f(x) = settlement amount needed for 50% profit

x =expenses in thousands of dollars

 

f(x) = 1.5(1.4x)

 

f(x) = 2.1x

x =50k

f(50) = 2.1(50) = 105