Aoife has been working as a nurse in the local public hospital and earning an annual salary of €40,000. Due to increasing property prices, she decides to set up her own estate agency business. Aoife’s business expenses in the first year will include a €16,000 salary for a part-time administrator, €1,000 for various supplies, €3,000 in advertising and €5,000 to rent an office. For the rent, Aoife will use her own savings on which she was earning interest of 5% annually. Aoife is paid the difference between revenue and business expenses. Aoife’s implicit cost in the first year of setting up her own business is €16,000 €24,250 €40,000 €40,250 €75,000 What revenue would Aoife’s business have to earn in the first year in order for Aoife to be better off by €30,000relative to working as a nurse? €70,250 €95,250 €102,500 €55,000 €95,000
Aoife has been working as a nurse in the local public hospital and earning an annual salary of €40,000. Due to increasing property prices, she decides to set up her own estate agency business. Aoife’s business expenses in the first year will include a €16,000 salary for a part-time administrator, €1,000 for various supplies, €3,000 in advertising and €5,000 to rent an office. For the rent, Aoife will use her own savings on which she was earning interest of 5% annually. Aoife is paid the difference between revenue and business expenses.
-
Aoife’s implicit cost in the first year of setting up her own business is
-
€16,000
-
€24,250
-
€40,000
-
€40,250
-
€75,000
-
-
What revenue would Aoife’s business have to earn in the first year in order for Aoife to be better off by €30,000relative to working as a nurse?
-
€70,250
-
€95,250
-
€102,500
-
€55,000
-
€95,000
-
Step by step
Solved in 3 steps
