Question

Profit is the amount of money that remains after all expenses of a project have been paid. The year has just​ ended, and Ajax​ Construction's owner is anxious to find out if the company had a profitable year. The company was awarded five contracts totaling​ $7,435,000. The costs associated with each project​ were: Project​ 1: $1,245,000 Project​ 2: $985,689 Project​ 3: $1,723,000 Project​ 4: $2,567,054 Project​ 5: $633,768 How much profit did the company​ earn?

Answer 1

Answer:

the Profit earned by the company is $280,489

Step-by-step explanation:

Total Cost of 5 projects awarded = $7,435,000

Cost of Project​ 1 = $1,245,000

Cost of Project​ 2 = $985,689

Cost of  Project​ 3 = $1,723,000

Cost of Project​ 4 = $2,567,054

Cost of Project​ 5 = $633,768

We need to find the profit earned by the company.

First we need to find Total cost spent on all 5 projects.

It can be found by adding cost spent on all projects.

Total cost spent on all 5 projects = Cost of Project 1 + Cost of Project 2 + Cost of Project 3 + Cost of Project 4 + Cost of Project 5

Total cost spent on all 5 projects = $1,245,000+ $985,689 + $1,723,000+ $2,567,054 + $633,768

Total cost spent on all 5 projects = $7,154,511

Now we can calculate profit earned using formula:

Profit earned = Total Cost of 5 projects awarded - Total cost spent on all 5 projects

Profit earned = $7,435,000 - $7,154,511

Profit earned = $1,280,489

So, the Profit earned by the company is $280,489