HeLp with Accounting?

Question

You sell 10 cups of lemonade for $1.00 each and it costs you $.30 to make each cup. You also paid $5.00 for advertising. Your gross profit is:

You sell 10 cups of lemonade for $1.00 each and it costs you $.30 to make each cup. You also paid $5.00 for advertising. Your earnings:

2 questions

Answer 1

Q1. GP = $7  (10-3=7)

Q2. Earnings = $2 (10-3-5=2)

Difference is Advertising is always below the GP line.