Determining Profit and Return on Investment Harry Honda owns a small car dealership. He rents the property he uses, buys cars from a manufacturer, and resells them to customers. During July, Harry sold 14 cars that cost him a total of $189,000. The total amount he received from the sale of these cars was $224,000. Other costs incurred by Harry for the month included rent, $2,550; utilities, $800; insurance, $825; maintenance of property and cars, $500; advertising, $1,000; and property taxes and business license, $200.
Required
A. Prepare a profit report that calculates the amount of profit earned during July.
B. What can Harry do with the profit he earned?
C. Assuming he invested $1,200,000 in the dealership, what was the return on his investment for July expressed as a percentage of his investment?