The direct expenses for the month included the following: $200 for advertising,
ID: 3012031 • Letter: T
Question
The direct expenses for the month included the following: $200 for advertising, $500 for salaries, and $200 in rent expenses for the month. What were the direct expenses for the month? What were the direct expenses for the day, assuming a 31 day month? Indirect expenses during the month included: $75 for water, $89 for electricity, $60 for insurance. What were the indirect expenses for the month? For the day, assuming a 31 day month? What would be the total operating costs in this problem for the day, and what is the profit for this store on this particular day?
Explanation / Answer
as given The direct expenses for the month included the following: $200 for advertising, $500 for salaries, and $200 in rent expenses for the month
we need to find the direct expenses for the month.
we can say that dircet expenses for month = $200 + $500 + $200 = $900
we need to find the direct expenses for the day assuming a 31 day month.
so direct expenses per day = $900/31 = $29.03
as given ndirect expenses during the month included: $75 for water, $89 for electricity, $60 for insurance
we need to find the indirect expenses for the month.
indirect expenses per month = $75 + $89 + $60 = $224
we need to find indirect expenses per day assuming 1 31 day month.
indirect expenses per day = $224/31 = $7.23
total operating costs for the day = direct expenses per day + indirect expenses per day
so,
total operating cost per day = $29.03 + $7.23 = $36.26
to find the profit we need to find gross margin.
but some data is missing in the question hence we cannot find the gorss marign,
but I will give you the formula form profit for the store on this patrticular day.
profit = gross margin - operating costs per day
profit = gross margin - $36.26