Tom borrowed PHP500,000 from her parents to open a spa. He pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal PHP150,000 and his variable costs equal PhP200,000. In her first year, Tom had a total of 2,000 customers at a price of PHP300/customer. Tom's total economic profit is
Tom borrowed PHP500,000 from her parents to open a spa. He pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal PHP150,000 and his variable costs equal PhP200,000. In her first year, Tom had a total of 2,000 customers at a price of PHP300/customer. Tom's total economic 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
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.4CE
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