If a casket costs $200 wholesale and is sold for $1000, with an average overhead of $500, what is the net profit?

To determine the net profit from the casket sale, you start with the selling price and subtract both the wholesale cost of the casket and the overhead expenses.

In this case, the selling price is $1,000. The wholesale cost is $200, and the overhead costs are $500.

The calculation for net profit is as follows:

1. Start with the selling price: $1,000.

2. Subtract the wholesale cost: $1,000 - $200 = $800.

3. Subtract the overhead: $800 - $500 = $300.

Thus, the net profit from the casket sale is $300.

While $800 may seem like a value tied to revenue before expenses, it does not accurately reflect profit after accounting for the necessary costs involved. Hence, the final net profit stands at $300, illustrating the importance of carefully accounting for all costs associated with sales to evaluate profitability accurately.