At Sam’s Swimming Pool Cleaning, Sam charges each of his 85 customers $25 per week for 52 weeks of service every year. Since pool cleaning is a service, it has no cost other than labor and supplies, which cost Sam $48,000 each year. Calculate Sam’s annual net income.

Sam’s annual revenue is 85 customers × $25 per week × 52 weeks = $110,500. Subtract the $48,000 annual cost of labor and supplies: $110,500 − $48,000 = $62,500. Therefore, Sam’s annual net income is $62,500, choice C.

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