The profit in a business in one year was $35,000. What must be the profit the second year in order that the average for the two years may be $37,500?

Average of the 2 years is (year1+year2) / 2

year1=35000

year2=? average=37500

so

(year1+year2) / 2=37500

(35000+?) / 2=37500

times 2 both sides

35000+?=75000

minus 35000 both sides

?=40000

the profit in 2nd year must be $40,000