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QUESTION 2. SCENERIO : An enterprising entrepreneur runs a small pottery firm in Redvers, Saskatchewan. She hires one helper at $12,000 per year, pays an
QUESTION 2. SCENERIO : An enterprising entrepreneur runs a small pottery firm in Redvers, Saskatchewan. She hires one helper at $12,000 per year, pays an annual rent of $5,000 for the shop, and spends 20,000 per year on materials. She has some of her own funds invested in equipment (pottery wheels, kilns, etc.) that could earn her $4,000 per year if alternatively invested. She has been offered $15,000 per year to work for a competitor. She estimates her entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $72,000. Calculate Accounting Profits Show your work. Calculate Economic Profits Show your work
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