Exercise 14-33

Day Street Delis owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year just ended.

Sales $45,000

Less Cost of food 20.000

Gross profit $25,000

Less Operating expenses

Wages of counter personnel $12,000

Paper products (e g , napkins) 4.000

Utilities (allocated) 2.900

Depreciation of counter eguipment and furnishings 2.500

Depreciation of building (allocated) 4.000

Deli managers salary (allocated) 3.000

Total 28,400

Loss on ice cream counter $(3,400)