Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Megan used to work at the local pizzeria for $30,000 per year but quit in order to start her own deli. Last year, she

image

Megan used to work at the local pizzeria for $30,000 per year but quit in order to start her own deli. Last year, she paid $6,000 rent each month, $5,500 for employee payroll each month, and $1,500 for supplies each month. She was planning on selling $3,250 worth of furniture but ended up bringing the furniture to her new deli. She had total revenue of $200,000. She asked an accountant and an economist to calculate her annual profit. Accountant says profit is $156,000, and economist says her profit is $189,250. O Accountant says profit is $187,000, and economist says her profit is $153,750. Accountant says profit is $10,750, and economist says her profit is $44,000. Accountant says profit is $44,000, and economist says her profit is $10,750.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate Megans annual profit we need to consider the following Given informati... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions