Question

Carla sells hot coffee, cider and tea from a sidewalk cart near wall street in new york city. last month she sold $4,500 worth of product to 1,000 customers. she spent $800 on buying her beverages in bulk. her monthly costs are: utilities = $100, salary = $2,000, advertising = $0, insurance = $0, interest = $0, rent (cart) = $500, depreciation = $0. what is carla's monthly cost of goods sold? $100 $600 $450 $800

Answer 1

$800
"She spent 800 on buying her beverages in bulk." The only value that relates to the cost of her goods is the 800 that was spent to buy them. everything else is business related expenses.