Question

QuietClean Inc. is an office building housekeeping contractor that employs mostly migrant labor to clearn small office buildings. Most of the work is second shift after the office workers of the firm's clients have gone home for the day. Generally the professional housekeeper(s) arrive driving a van that also has the material and equipment for cleaning at 5:00 and spend the next seven hours emptying waste baskets, vacuuming, cleaning the lavatories, mopping the floors, sponging off desks, etc. The following is some financial information regarding the business: 160,000 60,000 2,400,000 6,000,000 Rent for the Headquarters Revenue Depreciation Selling Expense 360,000 iability Insurance 300,000 Cleaning Staff Wages 129,600 Interest Expense Vacuum bags, sponges and Fuel, Tires etc. for the Van 100,000 Heating and Electricity Chemical Cleaning Agents Staff and Admin Salaries 160,000 other short-lived supplies 600,000 600,000 Assets 300,000 300,000 1,800,000 Profit taxes

Answer 1

Answer
	Cost of goods sold		3300000
	Gross Profit		2700000
	Gross profit margin		0.45
	Cost of goods sold
		Chemical cleaning agents					600000
		+Cleaning staff wages					2400000
		+Vacuum bags, sponges and other short lived supplies					300000
							3300000
	Grosss profit
		Revenue-cost of goods sold =			2700000
	Gross profit margin
		Gross profit/revenue =			0.45