Here's the revenue and expenses for the month.
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The Correct Answer and Explanation is:
To calculate Mia’s total profit or loss, we need to subtract the total expenses (fixed and variable) from the total revenue.
Step 1: Calculate Total Revenue
From the chart, the revenue items are:
- Dog Food: $3,500
- Cat Food: $2,100
- Pet Treats: $1,200
- Pet Supplies: $2,750
Total Revenue = $3,500 + $2,100 + $1,200 + $2,750 = $9,550
Step 2: Calculate Total Expenses
There are two types of expenses: fixed and variable.
Fixed Expenses:
- Rent: $2,000
- Salaries: $2,000
- Utilities: $1,000
Total Fixed Expenses = $2,000 + $2,000 + $1,000 = $5,000
Variable Expenses:
- Newspaper Ad: $200
- Product Stock: $4,000
Total Variable Expenses = $200 + $4,000 = $4,200
Total Expenses:
Total Expenses = Fixed Expenses + Variable Expenses
= $5,000 + $4,200 = $9,200
Step 3: Calculate Profit/Loss
Now, subtract the total expenses from the total revenue:
Profit or Loss = Total Revenue – Total Expenses
= $9,550 – $9,200 = $350
Conclusion:
Mia had a profit of $350 for the month of January.
This calculation is based on the basic principle of accounting, where profit or loss is determined by subtracting expenses (fixed and variable) from revenue. In this case, the revenue exceeds the total expenses, resulting in a positive value, which is the profit for the month.
