Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Susi is thinking of opening a grill business cafe (grilled/grilled). He estimates that it will cost Rp 500 million per year to rent a place,

Susi is thinking of opening a grill business cafe (grilled/grilled). He estimates that it will cost Rp 500 million per year to rent a place, to buy baking utensils and buy other ingredients. But he had to lose Rp 90 million per year from his marketing job at the company. a. Determine the opportunity cost Susi!. b. what is Susi's opportunity cost to run the cafe business for a year? If Susi thinks he can sell Rp 20 million a year, should he open a cafe?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a Susis opportunity cost can be calculated as the value of the next best alternative that hes giving ... 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

Cost Management Measuring Monitoring And Motivating Performance

Authors: Leslie G. Eldenburg, Susan K. Wolcott

2nd Edition

978-0-470-7694, 0470769424, 978-0470769423

More Books

Students also viewed these Accounting questions