The revenue cost statement for a popular grocery store owned and operated by John Mathew is presented below.

John Mathew owns and operates a corner grocery store.

John works full time as the manager, chief cashier, and janitor. John had $ 140,000 worth of refrigeration and other equipment invested in the store. Last year, John's total sales (revenue)were 190,000.

During the year he incurred the following costs:

Groceries wholesale $ 76,000, Utilities $ 4000 Taxes $ 6000, Advertising $ 2000, Labor services $ 10000.

If John had invested his funds, he would have earned 5% interest. (Interest foregone on the $140,000* 5%) Do not include the investment of $ 140,000, only the interest forgone. If the building that John owned was not being used as a grocery store, it could be rented for $ 1400 a month. (Rental income is thus forgone Calculate for a year). In addition, since John is tied up working in the grocery store a $ 50,000 managerial position with the local jewel is gone. ( Salary forgone)