Question 1
A company made in sales last year. The company has four employees. Two of the employees earn
per year, and the other two employees earn
per year.
In addition to employee salaries, the company also pays a month in rent for its office space and
per month in general expenses.
What was the company's profit last year?
Explanation: Annual profit = Total Annual Sales – Total Annual Expenses
Total Annual Sales = $400,000
Total Annual Expenses = Salaries + Rent + Expenses
2 employees @ 100,000
2 employees @ 140,000
12 months of rent @ 60,000
12 months of expenses @ 48,000
Total Annual Expenses = $348,000
Annual profit = 348,000 = $52,000