This posting addresses profit analysis of Day Street Deli.
Not what you're looking for?
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
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media