Register
You own a shoe store. The direct materials and labor used to make a pair of shoes cost you $30 dollars. You also incur a cost of $10 to advertise the shoes. You then sell that pair of shoes for $70. What
157k views
2 votes
You own a shoe store. The direct materials and labor used to make a pair of shoes cost you $30 dollars. You also incur a cost of $10 to advertise the shoes. You then sell that pair of shoes for $70. What is your operating profit from selling this pair of shoes

User Andreas Magnusson
by
4.7k points

1 Answer

3 votes

Answer: The operating profit is $30 per pair of shoes

Step-by-step explanation:

Operating profit is the profit before interest and taxes.

In this question, Sales = $70, Cost = $30, Advertising = $10

therefore, the operating profit = 70 - 30 - 10 = $30

User Marcin Olichwirowicz
by
4.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.5m questions

5.9m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Everyone has a unique spending plan. Which of the following factors has the greatest effect on a person's spending decisions?
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. what is his best option for affording a bachelors degree
Link Copied!