Matthews Consulting expects to work 5,000 hours next month.It has variable costs of $100 per hour and fixed costs of $600,000.What price must the company charge to earn a monthly profit of $900,000?

$900,000 = SP(5,000) - $100(5,000) - $600,000

$900,000 = SP(5,000) - $1,100,000

SP(5,000) = $2,000,000

SP = $2,000,000 / 5,000 = $400

Can you break down how the equation is sold. I don't understand how to get 2,000,000 and what happens to the 900,00?

Thank you.