Calculating annual profit from revenue and expenses

Steps:

• Identify total revenue: Sum all income sources for the year.
• Identify total expenses: Add up all costs incurred.
• Compute profit: Subtract total expenses from total revenue ($1,200 revenue -$700 expenses = $500 profit).
• Confirm no other adjustments needed based on given data.

Why B is correct:

• Profit is defined as revenue minus expenses, yielding exactly $500.

Why the others are wrong:

• A: Ignores positive revenue, understating by confusing costs with net.
• C: Reverses subtraction, treating expenses as exceeding revenue.
• D: Adds revenue and expenses instead of subtracting.

Not enough information for precise calculation without full financial details.

Final answer: B