The Good Light is a store for people who enjoy and collect candles to decorate their homes.Last year its net sales totalled $90,500 with $7,761 in taxes.The 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 $27,000,administrative expenses of $400,and utilities at $900.Calculate the net profit after tax for The Good Light.
A) $12,139
B) $21,142
C) $27,661
D) $54,200
E) $10,073

Question

Quizplus · Accepted Answer

Expenses = $27,000 + $400 + $900 = $28,300. Gross margin = Net sales - Cost of goods sold = $90,500 - $42,300 = $48,200. Net profit before tax = Gross margin - Expenses = $48,200 - $28,300 = $19,900. Net profit after tax = Net profit before tax = $19,900 - $7,761 = $12,139.

The Good Light Is a Store for People Who Enjoy