Ben owns and operates a painting company.
• He has a truck that costs $22 000 which he is paying in equal monthly payments over two years.
• His license to operate is $185 per year, and he must pay it all in August.
• His other monthly expenses are: $620 for fuel and maintenance, $380 for insurance, and $12124 in wages to his employees.
• His earnings were $24 887.96 for the month of August.
• His cost of paint and supplies during the month of August was $5250.
Did Ben have a profit or loss for the month of August? Calculate the profit or loss.
To calculate Ben's profit or loss for the month of August, we need to subtract his total expenses from his total earnings.
Total expenses:
- Monthly truck payment: $22,000 / 24 months = $916.67
- License fee: $185
- Fuel and maintenance: $620
- Insurance: $380
- Wages: $12124
- Cost of paint and supplies: $5250
Total expenses = $916.67 + $185 + $620 + $380 + $12124 + $5250 = $19275.67
Profit or loss:
Earnings: $24 887.96
Expenses: $19275.67
Profit = Earnings - Expenses
Profit = $24 887.96 - $19275.67
Profit = $4612.29
Therefore, Ben had a profit of $4612.29 for the month of August.