Question

The monthly expenses of Agoode restaurant for the month of march were as follows;

Food and beverage cost -$4000.00

Salaries for five workers - $750.00

Overhead cost-$500.00

Calculate; (i)the monthly gross profit if the total revenue is $8000.00

(ii) the monthly net profit.

Answer 1

(i) Gross profit: 8000.00-4000.00-750.00=$3250.00.

(ii) Net profit: 8000.00-4000.00-750.00-500.00=$2750.00.