An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new venture. She invests her savings of $42,000, which were earning 7 percent annually. She then spends $25,000 renting office equipment, hires two students at $18,000 a year each, rents office space for $14,000, and has other variable expenses of $35,000. At the end of the year, her revenues are $250,000. Her accounting profit is $
An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new venture. She invests her savings of $42,000, which were earning 7 percent annually. She then spends $25,000 renting office equipment, hires two students at $18,000 a year each, rents office space for $14,000, and has other variable expenses of $35,000. At the end of the year, her revenues are $250,000. Her accounting profit is $
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 3E
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![An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new venture. She invests her savings of $42,000, which were earning 7 percent annually. She then spends $25,000 renting office equipment, hires two
students at $18,000 a year each, rents office space for $14,000, and has other variable expenses of $35,000. At the end of the year, her revenues are $250,000.
Her accounting profit is $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77bcb509-76b6-4472-bf11-1f5164f60024%2Fe6491a47-4c00-481d-904d-468fb88fcdbb%2F88uhgt9_processed.png&w=3840&q=75)
Transcribed Image Text:An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new venture. She invests her savings of $42,000, which were earning 7 percent annually. She then spends $25,000 renting office equipment, hires two
students at $18,000 a year each, rents office space for $14,000, and has other variable expenses of $35,000. At the end of the year, her revenues are $250,000.
Her accounting profit is $
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