Question

Malinda's auto dealership of imported cars made $895,000 in revenue. The manager has determined that the total expenses equal to $598,000. Will this business net a profit or loss? _____ How much of a profit or loss? _____

Answer 1

Profits : $297,000

Step-by-step explanation:

Revenue is the money a business gets by selling its products and services to customers. Expenses are the cost incurred in the normal business process, like production and selling.

A business is profitable when revenues are more than expenses.

For Malinda Auto dealership, the revenue ($895,000) is more than expenses($598,000). Therefore, the business will make a profit.

Profit = revenue - expenses

=$895,000 -$598,000

=$297,000