Question

Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm – one offer was for $105,000 per year, and the other was for $85,000. However, she turned both jobs down to continue a painting career. If Jaynet sells 30 paintings per year at a price of $9,000 each: a. What are her accounting profits?

Answer 1

Answer: $245,000

Explanation:

Given that,

Spend on painting supplies and storage space =  $25,000

One offer = $105,000 per year

Other offer = $85,000

Jaynet sells 30 paintings per year at a price of $9,000 then,

Accounting profits = No. of paintings sold × Price of each painting - cost of painting

                               = 30 × $9,000 - $25,000

                               = $270,000 - $25,000

                               = $245,000