Practice Quiz

Dietetic Technician DTR Exam Prep

Category - Dietetic Technician

Start a Study Session Sign up for Question of the Day
A hospital coffee shop has monthly sales of $26,892. The coffee shop’s monthly expenses are as follows:

Cost of sales = $10,825
Salaries = $8,597
FICA = $2,150
Supplies = $1,975
Utilities = $2,345

What is the coffee shop’s profit margin for the month?
  1. 2%
  2. 4%
  3. 6%
  4. 8%
Explanation
Answer: B - The coffee shop’s profit margin for the month is 4%, as calculated below:

Net profit = monthly sales - (cost of sales + salaries + FICA + supplies + utilities)
Net profit = $26,892 - ($10,825 + $8,597 + $2,150 + $1,975 + $2,345)
Net profit = $1,000

Profit margin = net profit / sales
Profit margin = $1,000 / $26,892
Profit margin = 0.037 ≈ 0.04 = 4%
Previous Next
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz