Alex decided to stop watching squirrels and open a squirrel pet store. She took $100,000 out of her saving, that was earning 20% interest each year, to buy a store location. Over the course of the year, she spent $4,000 on ski masks, $5,000 on nets, and $1,000 on coffee. She made $40,000 in total revenue. She paid herself $5,000. Calculate economic profit. Round to 2 decimal points. Do NOT include $, %

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Alex decided to stop watching squirrels and open a squirel pet store. She took
$100,000 out of her saving, that was earning 20% interest each year, to buy a store
location. Over the course of the year, she spent $4,000 on ski masks, $5,000 on nets,
and $1,000 on coffee. She made $40,000 in total revenue. She paid herself $5,000.
"Calculate economic profit.
Round to 2 decimal points. Do NOT include $, %
Transcribed Image Text:Alex decided to stop watching squirrels and open a squirel pet store. She took $100,000 out of her saving, that was earning 20% interest each year, to buy a store location. Over the course of the year, she spent $4,000 on ski masks, $5,000 on nets, and $1,000 on coffee. She made $40,000 in total revenue. She paid herself $5,000. "Calculate economic profit. Round to 2 decimal points. Do NOT include $, %
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