Biff rented a pretzel stand and sold pretzels at the beach yesterday. He sold 200 pretzels for
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Question:
Biff rented a pretzel stand and sold pretzels at the beach yesterday. He sold 200 pretzels for $4 each.
Here is a list of all of Biff's costs:
Pretzel stand rental fee: $80
Wholesale food costs: $240
Paper containers, napkins and other supplies: $53
Biff could have worked for his buddy Jesse as a landscaper yesterday and earned: $100
Now please answer these 3 questions:
1. How much was Biff's implicit cost?
2. Calculate Biff's total profit.
Hint #1: Total profit = total revenue - total cost
Hint #2: Include ALL of Biff's costs in your calculation, including implicit cost
3. Calculate Biff's profit margin.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: