Jenna runs a wholesale business. She pays $3 for each widget and resells it for $8. Every month she has to pay $10,000 in rent, 20% of her total profit in taxes, and $2,500 each to four workers. If Jenna sells 5000 widgets one month, how much is her total profit or loss?
First calculate how much Jenna spends on salaries: $2,500 * 4 = $<<2500*4=10000>>10,000
Next find Jenna's total fixed costs by adding the cost of salaries and rent: $10,000 + $10,000 = $<<10000+10000=20000>>20,000
Next calculate how much profit Jenna makes on each widget by subtracting the cost from the sale price: $8 - $3 = $<<8-3=5>>5
Now multiply the profit per widget by the number of widgets sold: $5 * 5000 = $<<5*5000=25000>>25,000
Now subtract Jenna's costs from her sales to find her total profit before taxes: $25,000 - $20,000 = $<<25000-20000=5000>>5,000
Now multiply Jenna's profit by her 20% tax rate to find how much she owe in taxes: $5,000 * .2 = $<<5000*.2=1000>>1,000
Now subtract Jenna's taxes from her profit before taxes to find her total profit: $5,000 - $1,000 = $<<5000-1000=4000>>4,000
#### 4000