Question
Buy - U Deli's owner is distrurbed by the poor profit performance of her ice cream conter she has prepared the following profit analysis for
Buy - U Deli's owner is distrurbed by the poor profit performance of her ice cream conter she has prepared the following profit analysis for the year just ended
Sales $45,000
less cost food 20,000
gross profit $25,000
less operating expenses
wages of counter personal 12,000
paper product 4000
utility based on % of sales 2900
depreciation of equipment 3000
depreciation of building based on % of sales 5000
deli manager's salary basedd on % of time spent on ice cream 6000
total operation expenses $ 32900
income (loss)on ice cream counter ($ 7900)
cririque and revise the owner's analysis as you think appropriate justify your change
should the owner close the counter ? what other factors should be consider before closing it
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