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need accounting question answered in word document.

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_______________________________________________________________$45,000

Less: Cost of food____________________________________________________ 20,000

Gross Profit $25,000

Less: Operating expenses:

Wages of counter personnel_____________________________________$12,000

Paper products (e.g. napkins)____________________________________ 4,000

Utilities (allocated)____________________________________________ 2,900

Depreciation of counter equipment and furnishings__________________ 2,500

Depreciation of building (allocated)_______________________________ 4,000

Deli manager’s salary (allocated)_________________________________ 3,000

Total 28,400

Loss on ice cream counter $(3,400)

Required: Criticize and correct the owner’s analysis.