1. Janine is looking over her accounts from the previous month for her catering business. She had the following items in her accounts:

Wholesale food purchases $4500

Receipts from sales of pre-ordered appetizers $2775

Wages $3875

Kitchen lease $1200

Utilities $125

Wholesale beverage purchases $1575

Receipts from catered events $12500

Receipts from people taking cooking classes $675

Business insurance $135

a) Identify each item as an expense or as revenue.

Expenses:

Revenue:

b) Determine her total expenses for the month.

c) Calculate her total profit or loss for the month.

d) If in the next month she only had 71% of her revenues from this month, what would her total profit or loss be if the expenses did not change?

e) Is this a realistic scenario for a catering business where her revenues would decrease and her expenses stay the same? Provide rationale.