Manisha could work for another firm making $10,000 per month, but she decides to open her own gourmet cheese store and pay herself $2,000 per month. In her first month of operations, she spends $6,000 on cheese, $1,000 on other items, and $2,500 on rent. She had a great opening month and brought in revenues of $14,500. According to her accountant, what are Manisha's profits?
A)$3,000
B)$4,000
C)-$5,000
D)-$6,000

Question

Quizplus · Accepted Answer

Manisha's profits are calculated as total revenues minus total expenses. Her total expenses include $6,000 on cheese, $1,000 on other items, $2,500 on rent, and $2,000 as her salary, totaling $11,500. Her revenues are $14,500. Therefore, her profits are $14,500 - $11,500 = $3,000.

Manisha Could Work for Another Firm Making $10,000 Per Month