ESB VS2 Domain 4

A(n) _________________ refers to the net profit the company wants to make from the sale and is usually represented using a percentage. [Selling Price]

A(n) ______ price represents how much money it costs a business to make or obtain the products or how much it costs a business to perform the service. [Selling Price]

A(n) ________________ is a financial report that shows a company's assets, liabilities, and equity for a specific period. [Basic Financial Statements]

_____________ is the owner's remaining value after all liabilities have been deducted. [Basic Financial Statements]

A(n) _________ statement, also known as a profit and loss statement, shows the total revenues and expenses for a specific period. [Basic Financial Statements]

The ______________ point is the amount of revenue required to cover expenses. [Basic Financial Statements]

The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.

Ben owns a shoe store. He has a new line of limited-edition running shoes that he will be selling in his store soon. The cost of manufacturing the shoes was $18 per pair, and he wants to make a 20% profit on each pair he sells. What is Ben’s selling price?

The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.

Adam owns a restaurant. A new dish is being added to the restaurant’s menu. The cost of making the dish is $6.75, and he wants to make a 33% profit on each dish he sells. What is Adam’s selling price?

The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.

Cory owns a home goods store. He is about to add a new line of candles to his store. The cost of manufacturing the candles is $8.46 per candle, and he wants to make a 52% profit on each candle. What is Cory’s selling price?

Subtracting liabilities from assets calculates equity. A company’s balance sheet shows assets, liabilities, and equity.

Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in inventory, a $4,000 credit card balance, and $3,500 in long-term debt. What is Mallory’s equity?