In February, Cycle had income from sales of $16,000.?

Expenses for the month included: rent-$1250; utilities: $450; employee wages: $4,800; insurance: $300; part and supplies: $2,700. The owner also incurs a monthly franchise fee equal to 5 percent of income for sales. What is the amount of profit (or loss) earned by Cycle for the month of February. Please help!

2 Answers

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  • 6 months ago

    just subtract....

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  • 6 months ago

    Income

    Sales = 16,000

    ----------------------

    Expenses

    rent =         1250

    utilities =      450

    wages =     4800

    insurance =  300

    parts =       2700

    fran fee =     800   (5% * 16000)

    Total exp = 10,300

    -----------------

    Profit

    16,000 - 10,300

    $5,700 <––––––

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