If a company submits a bid with expected net sales of \$50,000 and estimated costs of \$42,500, what is the expected profit for this bid (to 2 decimals)?

• A. \$8,500.00
• B. \$7,500.00
• C. \$42,500.00
• D. \$50,000.00

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the problem. The company is submitting a bid with expected net sales of \$50,000 and estimated costs of \$42,500. The goal is to calculate the expected profit, which is the difference between net sales and costs.
2. Step 2: Recall the formula for profit calculation: Profit = Net Sales - Costs. This formula helps determine the financial gain or loss from the bid.
3. Step 3: Substitute the given values into the formula. Net Sales = \$50,000 and Costs = \$42,500. The equation becomes Profit = \$50,000 - \$42,500.
4. Step 4: Perform the subtraction operation to find the profit. Ensure accuracy in the calculation and round the result to two decimal places if necessary.
5. Step 5: Verify the result by reviewing the calculation and ensuring it aligns with the given data. Double-check for any rounding errors or misinterpretations of the problem.