chapter 17 question 17-24

Question

 Bohr Paint Company has annual sales of $12 million per year. If there is a profit of $5000 per day with 7 days per week operation, what is the total yearly business expense? All calculations are on a before-tax basis.

Answer 1

Profit = Total Revenue - Total Costs

π = R - C

We know R = 12,000,000

There are 365 days in a year, which means π = [5,000*365] = 1,825,000

1,825,000 = 12,000,000 - C

C = 10,175,000