Carla sells hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Last month she sold $4,500 worth of product to 1,000 customers. She spent $800 on buying her beverages in bulk. Her monthly costs are: Utilities = $100, Salary = $2,000, Advertising = $0, Insurance = $0, Interest = $0, Rent (cart) = $600, Depreciation = $0. Calculate Carla's average sale per customer.
A) $4.50
B) $4.00
C) $5.00
D) $0.80

Question

Quizplus · Accepted Answer

Carla's revenue = $4,500
Cost of goods sold (COGS) = $800
Expenses = $100 + $2,000 + $0 + $0 + $600 + $0 = $2,700
Profit = Revenue - COGS - Expenses = $4,500 - $800 - $2,700 = $1,000
Average sale per customer = Revenue ÷ Number of customers = $4,500 ÷ 1,000 = $4.50. Therefore, the answer is A.

Carla Sells Hot Coffee, Cider and Tea from a Sidewalk