Question

At Sam’s Swimming Pool Cleaning, Sam charges each of his 85 customers $25 per week for 52 weeks of service every year. Since pool cleaning is a service, it has no cost other than labor and supplies, which cost Sam $48,000 each year.
Calculate Sam’s annual gross profit.
a.
$2,125
b.
$4,420
c.
$62,500
d.
$110,500



Please select the best answer from the choices provided


A
B
C
D
Mark this and return

Answer 1

Revenue = 85 × $25 × 52 = $110,500.
Gross profit = $110,500 − $48,000 = $62,500.

Answer: C.