Question

Malinda's auto dealership of imported cars made $895,000 in revenue. The manager has determined that the total expenses equal to $598,000. Will this business net a profit or loss? _____ How much of a profit or loss? _____

Answer 1

Answer:

Profit : $297,000

Explanation:

Revenue is the earnings generated by a business by selling products and services. Expenses are the cost incurred in the process of generating revenue for the business.

A business will make profits if revenue exceeds expenses.

In this case, the revenue ($895,000) exceeds expenses($598,000). Therefore, the business will make a profit.

The profit will be revenue minus expenses

=$895,000 -$598,000

=$297,000