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6) Bella has a lawn maintenance business that generates $55,000 in revenue annually and $9,000 in expenses for equipment, supplies, gasoline, and advertising. Bella has
6) Bella has a lawn maintenance business that generates $55,000 in revenue annually and $9,000 in expenses for equipment, supplies, gasoline, and advertising. Bella has received two full-time job offers and turns both down. Job A pays $60,000 a year and the other pays $40,000 a year. Bella cannot run her lawn maintenance business and work at the same time. Also, since both job offers are full-time, she could only work one job. Based on this information, what are the accounting profits of Bella's lawn maintenance business What are the economic profits? 7) You are looking to purchase a new refrigerator for the company's lounge. You find an energy efficient model that sells for $1,850 and will save $48 a year in electricity costs at the end of the next five years. The standard model cost $1,600. Assuming your opportunity cost (same thing as discount rate or interest rate) for funds is 6%, which refrigeration should you purchase? 8) Why should decision be made using marginal (incremental) analysis, comparing the marginal benefits to the marginal costs of a particular decision
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