Question
Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. Kanesha pays $2,400 rent each month, $3,200 for monthly employee
Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. Kanesha pays $2,400 rent each month, $3,200 for monthly employee payroll, and $900 for supplies each month. She was planning on selling several of her own tables and chairs on Craigslist for $300, but instead she brought them to The Coffee Cat. Additionally, Kanesha quit working as an accountant where she was earning $53,000 per year to open up the shop. If the shop earns $200,000 in revenue this year, calculate annual:
a. Accounting profits.
b. Economic profits.
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