The discount division of a diversified retailer has revenues of $10,000,000,direct costs of $8,000,000,and indirect costs of $3,000,000.What is the division's total profit?

Question

Quizplus · Accepted Answer

Total profit is calculated by subtracting both direct and indirect costs from revenues. Here, $10,000,000 (revenues) - $8,000,000 (direct costs) - $3,000,000 (indirect costs) = -$1,000,000.

The Discount Division of a Diversified Retailer Has Revenues of $10,000,000,direct