At Sam’s Swimming Pool Cleaning, Sam charges each of his 85 customers $25 per week for 52 weeks of service every year. Since pool cleaning is a service, it has no cost other than labor and supplies, which cost Sam $48,000 each year.

Calculate Sam’s annual gross profit.
a.
$2,125
b.
$4,420
c.
$62,500
d.
$110,500

Question

At Sam’s Swimming Pool Cleaning, Sam charges each of his 85 customers $25 per week for 52 weeks of service every year.  Since pool cleaning is a service, it has no cost other than labor and supplies, which cost Sam $48,000 each year.  

Calculate Sam’s annual gross profit.
a.
$2,125
b.
$4,420
c.
$62,500
d.
$110,500

xguardians · Answer

85 customers * $25 a week $52 weeks = profit
profit - cost = gross profit
profit - $48,000 = gross profit.