The following is cost information for the Creamy Crisp Donut Company LL Entrepreneur's potential earnings as a salaried worker $50,000 Annual lease on building = $22,000 Annual revenue from operations $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business =$6,000 Creamy Crisp's total revenues exceed its total costs, including a normal profit, by Multiple Choice
The following is cost information for the Creamy Crisp Donut Company LL Entrepreneur's potential earnings as a salaried worker $50,000 Annual lease on building = $22,000 Annual revenue from operations $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business =$6,000 Creamy Crisp's total revenues exceed its total costs, including a normal profit, by Multiple Choice
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following is cost information for the Creamy Crisp Donut Company
LL
Entrepreneur's potential earnings as a salaried worker $50,000
Annual lease on building = $22,000
Annual revenue from operations $380,000
Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business =$6,000
Creamy Crisp's total revenues exceed its total costs, including a normal profit, by
Multiple Choice
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