Question

Four concession stands are selling snacks at the game. Total projected concession sales are $23,000. One vendor needs to recoup supply costs of $2,500 and pay her three employees $10/hour for the three-hour event before she makes a profit. If she captures 18 percent of the total sales, what will her profit be?

Answer 1

Find 18% of the total sales:

18% of $23,000 = 0.18 x 23000 = $4140

Find the total cost:

Supply Cost = $2500

Wages for 3 employees = 3($10 x 3) = $90

Total cost = 2500 + 90 = $2590

Find the profit:

Profit = 4140 - 2590 = $1550

Answer: Her profit is $1550