av1dt_08

Your customer has a Yoga Studio. When she started the business, she got a loan for $5,000 to equip the studio. Interest is $75 per month and depreciation on the furnishing is $50 per month.

She pays $1,000 per month in rent and has to buy supplies for $200 per month. She has $150 of inventory.

She has a contract instructor who she pays $50 a class for 15 classes per month. She also pays herself $50 per class and does 30 classes per month. Last month she had an average of 6 students per class and they paid $15 per class. She sold $100 of product to her customers with a cost of goods of $50.

What is your customer's Net Profit for the month?
	$375
	$525
	$575
	$775
Select the correct answer.