Question

Jaynet spends $30,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm – one offer was for $85,000 per year, and the other was for $120,000. However, she turned both jobs down to continue a painting career. If Jaynet sells 40 paintings per year at a price of $4,000 each:

a. What are her accounting profits?

Answer 1

$130,000 after spending $30,000 on paint supplies.

Explanation:

4,000 X 40 =160,000 - 30,000 = 130,000