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The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $60,000 Annual lease on building =
The following is cost information for the Creamy Crisp Donut Company.
Entrepreneur's potential earnings as a salaried worker = $60,000
Annual lease on building = $30,000
Annual revenue from operations = $250,000
Payments to workers = $100,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Creamy Crisp's total economic costs are
Multiple Choice
- $284,000.
- $138,000.
- $34,000.
- $144,000.
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