Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Abby quit her $50,000 per year job to start her own business. In the first year, her business received $200,000 in revenue, with the following
Abby quit her $50,000 per year job to start her own business. In the first year, her business received $200,000 in revenue, with the following costs: $100,000 in wages to her employees, $20,000 on miscellaneous materials used in her business, and $20,000 on electrical, gas, and water usage. Abby also used $50,000 of her personal savings to purchase equipment for her business. She was earning 10 percent interest on her savings. Assuming no depreciation in the value of the equipment, Abby's business earned an economic profit for the year of___. $40,000 $55,000 -$45,000 $60,000 $5,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started