PROBLEM
1.Lance Legstrong owns a bicycle sales and repair shop. He had the following transactions during May:
a.Provided repair services at a price of $950 during the month. The cost of supplies and materials used was $450.
b.Rent on the shop was $750.
c.Sold $5,000 of bicycles that cost the firm $2,750.
d.The cost of utilities for the month was $125.
e.Employees were paid wages of $1,100 during the month.
f.The cost of advertising for May was $75.
g.Miscellaneous costs for May were $150.
Required:
Determine the profit earned by Mr. Legstrong for May.
2.Tom Greenthumb owns a lawnmower sales and repair shop. He had the following transactions during July:
a.Provided repair services at a price of $1,150 during the month. The cost of supplies and materials used was $525.
b.Rent on the shop was $550.
c.Sold $4,900 of mowers that cost the firm $3,050.
d.The cost of utilities for the month was $150
e.Employees earned wages of $1000 during the month
f.The cost of advertising for July was $110.
g.Miscellaneous costs for July were $215.
Required:
Determine the profit earned by Tom Greenthumb for July.