Exercise 5 (Self study). Alfonso is running an ice cream parlor in Wurzburg. The parlor's monthly revenue is e 3,000. The rent for the shop is e 1,200 per month. Additionally, the production of ice cream causes variable costs of e 800 each month, that only incur when ice cream is actually produced. The palor's owner Alfonso could also work as an employee at another ice cream shop. Then, he would earn e 2,000 net per month. a) Determine and explain Alfonso's opportunity cost when running his own ice cream parlor. b) Calculate the monthly company result. Result: Accounting result: e 1,000, Economic result: e -1,000. Alfonso is considering closing down his shop. He reads the rental agreement and finds out that the terms of notice are three months. Alfonso gives notice of termination of the agreement and is weighing up closing the ice cream parlor immediately against running it till the end of the contract.