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:

Profits: $297,000

Explanation:

Revenue is the money generated by a business by selling its products and services to customers. Expenses are the cost incurred in the production and selling of goods and services.

Profits arise when revenues exceed expenses.

For Malinda Auto dealership, the revenue ($895,000) exceed expenses($598,000). Therefore, the business will realize a profit.

Profit = revenue - expenses

=$895,000 -$598,000

=$297,000