Candle in the Wind LLC 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 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.

Question

Quizplus · Accepted Answer

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

Candle in the Wind LLC Is a Store for People