Profit & Loss

Multiple Choice

What are the total expenses for operating Elmer's hot dog cart?

• $500

• $700

• $200

• $300

Fill in the Blanks

Use the basic financial equation to determine the profit or loss for the following:

revenue $85,695; expenses $72,624

(only key in the numerical answer with a $, not the word profit/loss)

Fill in the Blanks

A retail fashion buyer purchased 500 units of basic denim jeans for $9 each. If the jeans are sold in store for $24.99, calculate the gross profit the store will make if all jeans are sold. Use the formula: Gross Profit = (Selling Price - Cost Price) x Quantity Sold.

Multiple Choice

What is the difference between revenue and expenses?

• Revenue is the money coming in from sales

• Expenses are the costs incurred to operate a business

• Profit is calculated by subtracting expenses from revenue

• Revenue is the total profit made by a business

Multiple Select

What significant expenses does Emily face in her landscaping business?

• Equipment purchase

• Overhead costs

• Marketing expenses

• Employee salaries

Multiple Choice

A bakery produces sandwiches. The fixed costs include rent ($10,000) and insurance ($3,000). The variable costs consist of bread ($15,000), sandwich fillings ($20,000), and packaging ($5,000).

Calculate the total variable costs for the bakery.

• 38,000

• 40,000

• 25,000

• 30,000

Multiple Choice

Amount paid for the use of property, such as space, equipment, or other rentals.

• Rent Income
• Rent Expense
• Rent Receivable
• None of the choices are correct

Multiple Choice

What is the total revenue generated by Jennifer from selling cupcakes and cookbooks?

• $800

• $1,300

• $500

• $1,000

Multiple Choice

If Jennifer sells 100 cupcakes at $8 each, what is her cupcake revenue?

• B. $600
• A. $200
• D. $1,000
• C. $800

Multiple Choice

What is the difference between profit and loss?

• Profit occurs when revenue exceeds expenses

• Loss occurs when expenses exceed revenue

• Profit is essential for sustainability

• Loss is beneficial for business