Purchase Solution

This posting addresses profit analysis of Day Street Deli.

Not what you're looking for?

Ask Custom Question

Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year that just ended.

Sales $45,000
Less: Cost of food 20,000
Gross profit 25,000
Less: Operating expenses
Wages of counter personnel 12,000
Paper products 4,000
Utilities (allocated) 2,900
Depr. of counter equip. 2,500
Depr. of bldg. (allocated) 4,000
Deli manager's salary 3,000
Total 28,400
Loss on ice cream counter $(3,400)

Criticize and correct the owner's analysis

Purchase this Solution

Solution Summary

The solution shows how to correct the profit analysis of the Day Street Deli.

Solution Preview

Correct analysis:

Gross profit $25000
Wages $12000
Paper $4000

Profit ...

Purchase this Solution


Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.