Question

What are the expenses of a business that has revenues of $55,000 and a profit margin of 5%?

a) $52,250
b) $50,000
c) $53,750
d) $55,750

Answer 1

The expenses of a business with revenues of $55,000 and a profit margin of 5% are $52,250, which is obtained by subtracting the profit from the revenues.

Step-by-step explanation:

The question addresses the calculation of business expenses based on given revenues and profit margin. A business with revenues of $55,000 and a profit margin of 5% means that the profit (5% of $55,000) is $2,750. To calculate the expenses, we subtract the profit from the revenues: $55,000 - $2,750 = $52,250.

Therefore, the correct answer to the question, "What are the expenses of a business that has revenues of $55,000 and a profit margin of 5%?" is (a) $52,250.