Thabo runs a Tuck shop. Calculate the profit.

The only income listed is the basic salary.

$$\text{Total Income} = \text{Basic Salary} = \text{R}500$$

Add up all the listed expenses.

$$\text{Total Expenses} = \text{Electricity} + \text{Rent} + \text{Insurance}$$ $$\text{Total Expenses} = \text{R}300 + \text{R}500 + \text{R}400$$ $$\text{Total Expenses} = \text{R}1200$$

Profit is calculated by subtracting total expenses from total income.

$$\text{Profit} = \text{Total Income} - \text{Total Expenses}$$ $$\text{Profit} = \text{R}500 - \text{R}1200$$ $$\text{Profit} = \boxed{\text{}-\text{R}700}$$

A negative profit indicates a loss.