Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Happyquit her part-time job as anurseearning AUD60,000 per year to start her own food kiosk business. To start the businessHappyutilized AUD50, 000 she was earning

Happyquit her part-time job as anurseearning AUD60,000 per year to start her own food kiosk business. To start the businessHappyutilized AUD50, 000 she was earning from her rental property. Also,Happyused AUD50,000 she had saved in Commonwealth Bank earning 5% interest per year.Happy's first year business was summarized as follows:

Item

Amount (AUD)

Total Revenue

160,000

Labor cost

100,000

Cost of Materials

25,000

Equipment rental

30,000

Use the information provided to answer the following questions

(a)Calculate the business economic profit.If necessaryuse the table below.

(b)Explain whetherHappymade the right decision to quit her teaching job.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Theory Of Moral Sentiments

Authors: Adam Smith, D D Raphael

1st Edition

0865970122, 9780865970120

More Books

Students also viewed these Economics questions