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Rescooperate Ice Cream Shop recently analyzed their books. They found that in the past year, they made $100,000 selling ice cream and spent $75,000 on supplies and factory space. The remaining $25,000 represents _______.A. profitB. lossC. revenueD. expense

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Answer:

A. Profit

Explanation:

We know,

Profit/Income = Revenues - Expenses

If revenues exceed expenses, a company can receive a profit.

If expenses exceed revenues, a company can incur a loss.

Here,

Sales revenues = $100,000 by selling ice cream.

Expense = $75,000 by incurring supplies and factory space

Therefore, Profit = Sales revenues - Expenses

Profit = $100,000 - $75,000

Profit = $25,000

Therefore, option A is the answer.

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