A hospital coffee shop has monthly sales of $26,892. The coffee shop's monthly expenses are as follows:
Cost of sales = $10,825
Salaries = $8,597
FICA = $2,150
Supplies = $1,975
Utilities = $2,345
What is the coffee shop's profit margin for the month?

Question

Quizplus · Accepted Answer

The coffee shop's profit margin for the month is 4%, as calculated below:
Net profit = monthly sales - (cost of sales + salaries + FICA + supplies + utilities)
Net profit = $26,892 - ($10,825 + $8,597 + $2,150 + $1,975 + $2,345)
Net profit = $1,000
Profit margin = net profit / sales
Profit margin = $1,000 / $26,892
Profit margin = 0.037 ? 0.04 = 4%

A Hospital Coffee Shop Has Monthly Sales of $26,892