Question

Your next-door neighbor thinks that she has discovered the next food craze: a blend of Chinese and Mexican cuisine she is calling Wildhorse. She already has one location that is busy all day. She currently has gross sales of $7.80 million. Her expenses, which include ingredients, rent, and personnel, run $5.50 million. What is her net profit or loss?$2.30 million profit.$7.80 million loss.$2.30 million loss.$5.00 million profit.

Answer 1

The net profit of the neighbor's restaurant is $2.30 million.

Step-by-step explanation:

The net profit or loss of the neighbor's restaurant can be found by subtracting the expenses from the gross sales. In this case, the gross sales are $7.80 million and the expenses are $5.50 million.

Net Profit = Gross Sales - Expenses

Net Profit = $7.80 million - $5.50 million

Net Profit = $2.30 million

Therefore, the net profit is $2.30 million.