Your next-door neighbor thinks that she has discovered the next food craze: a blend of Chinese and Mexican cuisine she is calling Cullumber. She already has one location that is busy all day. She currently has gross sales of $7.85 million. Her expenses, which include ingredients, rent, and personnel, run $3.50 million. What is her net profit or loss?

$4.35 million loss.

$3.00 million profit.

$7.85 million loss.

$4.35 million profit.