Using the Following Information, Calculate the Monthly Net Profit $\quad \$ 73,904$

question 11

Multiple Choice

Using the following information, calculate the monthly net profit. Sales for the month: $\quad \$ 73,904$
Food and labor costs $\quad 70 \%$ of sales
Rent and Insurance: $\quad \$ 1500$ /month
Supplies: $\quad \$ 2217 /$ month
Other overhead: $\quad \$ 3791 /$ month

• A) \( \$ 51,733 \)
• B) \( \$ 22,171 \)
• C) \( \$ 7508 \)
• D) \( \$ 14,663 \)

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Definitions:

Present Value

Present value is a financial concept that calculates the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis; also refers to the interest rate charged by central banks on loans to commercial banks.

Cash Flows

The complete sum of cash inflows and outflows within a corporation, severely impacting its liquidity stance.