Respuesta :
The remaining $25,000 could have been their profit. While they spent $75,000 as capital, their goods may have been sold at a price and number that covered the capital at the same time earn extra as well. This extra is called the profit. That is how businesses earn money, through profit.
The remaining $25,000 represents the profits of the Rescooperate ice cream shop.
Further explanation:
Computation of a firm’s profits: A firm’s profits are calculated by subtracting the value of the firm’s costs incurred from the value of the firm’s revenue. It is a measure of the amount left with the firm after spending a portion of revenue on various costs. The formula to compute the firm’s profits is as follows:
[tex]\begin{aligned} Firm's\:profits&=Revenue-Costs\end{aligned}[/tex]
Computation of Rescooperate ice cream shop: The profits of the Rescooperate ice cream shop can be determined by taking out the difference between its revenue and the costs incurred. The revenue of the Rescooperate ice cream shop is $100,000 as it has made this amount by indulging in the selling of ice creams. On the other hand, the Rescooperate ice cream shop has incurred costs of $75,000 as it has incurred this amount on supplies and factory space.
[tex]\begin{aligned} Firm's\:profits&=Revenue-Costs\\&=\$100,000-\$75,000\\&=\$25,000\end{aligned}[/tex]
Thus, the remaining $25,000 represents the profits of the ice cream shop.
Learn more:
- Learn more about the profit margin https://brainly.com/question/10218300
- Learn more about the revenue https://brainly.com/question/1337739
- Learn more about variable and fixed expenses https://brainly.com/question/7854996
Answer details:
Grade: High School
Subject: Economics
Chapter: Profits and Loss
Keywords: ice cream shop, recently analyzed, their books, found, in the past year, made, selling ice creams, spent on supplies, and factory space, the remaining, represents, profits and loss, expense, revenue, costs incurred on supplies and factory space, by taking the difference, excess amount of revenue over costs incurred.
