Explanation : Revenue
Dog Food $3,500
Cat Food $2,100
Pet Treats $1,200
Pet Suppies $2,750
Total $9,550
Fixed Expenses
Rent $2,000
Salaries $2,000
Utilities $1,000
Product Stock $4,000
Total $9,000
Variable Expenses
Newspaper Ad $200
Total $200
Okay, so the question here is asking us to “Calculate whether Mia had a profit or loss”.
The first thing you need to do is add up the expenses.
Total Expenses = Fixed Expenses + Variable Expenses
Total Expenses = $9,000 + $200 = $9,200
So now we know that total expenses is $9,200 and total revenue is $9,550.
All you have to do is deduct total expenses from total revenue:
Profit/Loss = $9,550 - $9,200 = $350
Mia’s total profit/loss for the month of January account is $350.
