Question

Rescooperate Ice Cream Shop recently analyzed their books. They found that in the past year, they made $100,000 selling ice cream and spent $75,000 on supplies and factory space. The remaining $25,000 represents -profit. -loss. -revenue. -expense.

Answer 1

Answer:

The correct option is a. profit

Explanation:

In the question, it is given that the company has made sales of $100,000 and spend $75,000 for supplies and factory space which is an expense for a company.

So,

It is a profit of $25,000 because profit equals to

= Sales revenue - expenses

= $100,000 - $25,000

The amount is coming in positive so it not a loss and sales and expenses are given in the question, so the remaining option which is left is profit.

Thus, the remaining $25,000 represents profit

Hence, the correct option is a. profit

Answer 2

Answer:

The correct answer to the following question is that the remaining amount of $25,000 is the profit that Res cooperate has earned by selling ice creams .

Explanation:

As per the given information -

Res cooperate has sold the ice cream up to $100,000

and the expenses that they have incurred like on supplies and factory space is up to $75,000 . So the remaining amount of $25,000 ( $100,000 - $75,000 ) is the profit that company has earned .

Formula for profit - Revenue - Expenses

= $100,000  - $75,000

= $25,000