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Need details explanation and calculation Sundus has initial investment of SR45, 000. If it were to be invested on stocks, the market interest rate would
Need details explanation and calculation
Sundus has initial investment of SR45, 000. If it were to be invested on stocks, the market interest rate would be 0.12 (12%). However, the industry uses capital and labor as inputs and sells 2, 800 shoes per month at SR25 market price. If the cost of the machine that produces the shoes is SR 30,000 and labor cost is 20,000. Calculate the following: a. Total revenue. b. Opportunity cost of capital c. Economic profit d. Accounting profit e. From your answer in (c), is the business profitable from the economic profit point of view? Explain yourStep by Step Solution
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