Question

Lauren runs a chili restaurant in San Francisco. Her total revenue last year equaled $111,000. The rent on her restaurant totaled $48,000. Her labor costs totaled $43,000. Her materials, food and other variable costs totaled $19,000. To Lauren's accountant, Lauren

Answer 1

Lauren's accountant Lauren earned a profit $1000

Step-by-step explanation:

given data

total revenue = $111,000

rent on restaurant = $48,000

labor costs = $43,000

variable costs = $19,000

to find out

we consider Lauren's accountant, Lauren

a) earn profit of $1000 b) earn profit of $111,000

c) total cost equal to $91000 d) incurred loss of $1000

solution

we get first total cost that is

total cost = Rent + Labor cost + variable costs ...............1

put here value

total cost = $48,000 + $ 43,000 + $19,000

total cost = $110,000

and Total Profit will be here

Total Profit = Total Revenue - Total Cost .................2

put here value

Total Profit = $111,000 - $110,000

Total Profit = $1,000

so that To Lauren's accountant Lauren earned a profit $1000

so correct option is a) earn profit of $1000