5.The Carnival Company recorded the following sales to customers and costs of doing business during the month of June, 2007:
Cost of employee labor$11,100
Sales from hourly charges on pool tables25,875
Cost of food products5,512
Cost of janitor and other maintenance1,550
Sales of refreshments16,125
Rent on the building2,700
Required:
Prepare a profit report for June, 2007.
6.David Strum builds guitars by hand. He pays $600 for 10 board-feet of wood for the cases. Each guitar requires 2 board-feet of wood to build. A set of strings for each guitar costs $40. Other materials cost $50 per guitar. Strum Away pays $640 rent and $240 in utilities per month. Strum Away produces and sells 8 guitars per month at a price of $1,000 each.
Required:
a. What is the average cost of a guitar?
b. How much profit does Strum Away earn on each guitar?
c. What is her normal profit per month?