Question

question
endeavor, inc. is a manufacturing company that has been struggling to do well since its inception 2 years ago. this year, endeavor spent $300,000 on its business and accumulated $600,000 in revenues.
in this scenario, which of the following statements about endeavor is true?
answer

• endeavor, inc. had a loss of $600,000.
• endeavor, inc. made a profit of $600,000.
• endeavor, inc. made a profit of $300,000.
• endeavor, inc. made a profit of $0.

Explanation:

Step1: Recall Profit Formula

Profit = Revenue - Expenses.

Step2: Identify Revenue and Expenses

Revenue = $600,000, Expenses = $300,000.

Step3: Calculate Profit

Profit = $600,000 - $300,000 = $300,000.

Answer:

Endeavor, Inc. made a profit of $300,000. (The option with this statement)