You are working as a Assistant Manager at Pink Potato Warehouse. Your salary is $23.15 per hour and you work 30 hours per week. You have always wanted to be your own boss, but could never afford to start up or purchase your own company. Next week you will gain access to your $180000 trust fund which is currently invested at 11%. Last week you were presented with an opportunity to purchase Quick Volcano Veggie Farm in response to your inquiries. The email stated that the Veggie Farm company is available for $141000. A decision from you is needed by the end of the week. The annual estimates for the first few years including the first of operation supplied by the Quick Volcano Veggie Farm company are below: SALES EXPENSES: RENT COSTS OF GOODS OTHER SALARIES TAXES/FEES UTILITIES 108000 36000 27000 36000 13000 21000

You are working as a Assistant Manager at Pink Potato Warehouse. Your salary is $23.15 per hour and you work 30 hours per week. You have always wanted to be your own boss, but could never afford to start up or purchase your own company. Next week you will gain access to your $180000 trust fund which is currently invested at 11%. Last week you were presented with an opportunity to purchase Quick Volcano Veggie Farm in response to your inquiries. The email stated that the Veggie Farm company is available for $141000. A decision from you is needed by the end of the week. The annual estimates for the first few years including the first of operation supplied by the Quick Volcano Veggie Farm company are below: What are the Explicit costs of owning the business? What are the Implict costs of owning the business? What are the total Accounting profits? What are the total Economic profits? Should you take the opportunity? Yes, because Economic Profits >0 No, because Accounting Profits >0 Yes, because Accounting Profits >0 No, because Economic Profits