Max and Morris Operate a Restaurant and Bakery

question 75

Short Answer

Max and Morris operate a restaurant and bakery. They share some basic accounting, information systems and office space. Max runs the restaurant with sales of $63,000 and direct expenses of 60% of his sales while Morris runs the bakery with sales of $127,000 and direct expenses of 55% of his sales. With fixed costs of $25,000 allocated evenly between the two, what is the net income earned by Max and Morris for the prior year.

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Definitions:

Content Creation

The process of generating topic ideas that appeal to a target audience, and creating written or visual content around those ideas.

Brand Voice

The distinct personality a brand uses in its communications and messaging to effectively engage its audience.

Audience Perceives

How a group of potential customers or viewers understands and interprets messages or content presented to them.

Writing Style

The distinctive manner in which a writer expresses ideas through word choice, sentence structure, and tone, reflecting their unique voice or brand.