Candle in the Wind is a store for people who enjoy and collect candles to decorate their homes.Last year its net sales totaled $125,000 with $13,700 in taxes.The cost value of the candles it sold was $42,300.The only expenses that the operation has are salaries to the owner and one part-time assistant for $52,000,administrative expenses of $400,and utilities at $900.Calculate the net profit after tax for Candle in the Wind.

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Quizplus · Accepted Answer

Expenses =$52,000 + $400 + $900 = $53,300Gross Margin = Net Sales - Cost of goods sold = $125,000 - $42,300 = $82,700.Net Profit before tax = Gross Margin Expenses = $82,700 - $53,300 = $29,400Net Profit after tax = Net Profit before Tax = $29,400 - $13,700 = $15,700

Candle in the Wind Is a Store for People Who