Multiple Choice
If Kaycie's company reports total sales of $120,000, sales returns and allowances of $5,000, and sales discounts of $3,000, what is Kaycie's net sales?
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4. Merchandising Operations
Net Sales
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If a company's net sales for the year are \$500,000 and its total expenses are \$400,000, how much profit does the company make at the end of the year?
A
$140,000
B
$100,000
C
$120,000
D
$2
Verified step by step guidance1
Step 1: Understand the concept of profit. Profit is calculated as the difference between net sales (revenue) and total expenses. The formula is: .
Step 2: Identify the given values in the problem. Net sales are provided as $500,000, and total expenses are $400,000.
Step 3: Substitute the given values into the profit formula. This step involves replacing 'Net Sales' with 500,000 and 'Total Expenses' with 400,000 in the formula: .
Step 4: Perform the subtraction operation to find the profit. Subtract total expenses from net sales to determine the company's profit.
Step 5: Compare the calculated profit to the multiple-choice options provided in the problem to identify the correct answer.
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