Ben owns and operates a painting company.

Question

• 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.

Answer 1

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.