Cora, a carpenter, worked for a home construction business and earned $66,700 per year. Cora quit her job to start her own business. To buy the necessary equipment, she borrowed $50,000 from her bank, whom she pays 8.0 percent interest per year. Last year she paid $72,300 for materials, $12,400 for operating expenses and paid all of the interest on the loan from her bank. She had revenue of $156,800. For last year, Alfred, the accountant, says Cora’s profit is _________ and Evelyn the economist says Cora's profit is ___________.  A. more than $69,000 but less than $75,000; more than $1,200 but less than $1,750 B. more than $65,000 but less than $69,000; more than $1,200 but less than $1,750 C. more than $65,000 but less than $69,000; more than $4,500 but less than $6,250 D. more than $69,000 but less than $75,000; more than $4,500 but less than $6,250 E. None of the above.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Cora, a carpenter, worked for a home construction business and earned $66,700 per year. Cora quit her job to start her own business. To buy the necessary equipment, she borrowed $50,000 from her bank, whom she pays 8.0 percent interest per year. Last year she paid $72,300 for materials, $12,400 for operating expenses and paid all of the interest on the loan from her bank. She had revenue of $156,800. For last year, Alfred, the accountant, says Cora’s profit is _________ and Evelyn the economist says Cora's profit is ___________. 

A. more than $69,000 but less than $75,000; more than $1,200 but less than $1,750

B. more than $65,000 but less than $69,000; more than $1,200 but less than $1,750

C. more than $65,000 but less than $69,000; more than $4,500 but less than $6,250

D. more than $69,000 but less than $75,000; more than $4,500 but less than $6,250

E. None of the above.

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