How is profit calculated at Jersey Mike's?

The correct approach to calculating profit at Jersey Mike's involves subtracting the costs associated with the goods sold from the total sales. This method effectively determines the amount of money made after covering the direct costs of producing the products sold.

The concept of profit revolves around the difference between revenues and expenses, making it crucial for the business to monitor both sales and the cost of goods sold accurately. By focusing on total sales and the costs associated with those sales, Jersey Mike's can ascertain its profitability, allowing for better financial planning and decision-making.

The other options do not accurately represent the straightforward method of profit calculation. For instance, subtracting total expenses from net income confuses different financial metrics and does not directly calculate profit in the context of operational performance. Similarly, averaging sales or multiplying total sales by locations does not factor in the necessary costs to determine true profitability. Thus, recognizing that profit stems from total sales less the costs gives a clear picture of the financial health of Jersey Mike's.