Exercise $14-33$ Drop Product Line $($LO $14-4,14-5)$

Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year just ended.

Sales

Less: Cost of food

Gross profit

Less: Operating expenses:

Wages of counter personnel

Paper products $($e$.$g$.,$ napkins$)$

Utilities $($allocated$)$

Depreciation of counter equipment and furnishings

Depreciation of building $($allocated$)$

Deli manager's salary $($allocated$)$

Total

Loss on ice cream counter

$$55,000$

$25,000$

$$30,000$

$[$$$14,000],[5,000],[3,400],[3,000],[5,000],[3,500]$

$\frac{33,900}{\text{\$}(3,900)}$

Required:

Correct the owner's profit analysis for the year just ended.