Suppose that there is a person- Person A. Person A quits her job where she earned $30,000 per year. Now, suppose that person starts a business and uses his savings of $60,000 on which she was earning a 10% rate of interest and uses it to buy the raw materials for business. He receives $160,000 in revenue in his business and pays rent of $20,000 and $25,000 to laborers. Calculate the accounting profits. a. 55,000 b. 45,000 c. 81,000 d. 115,000

Suppose that there is a person- Person A. Person A quits her job where she earned $30,000 per year. Now, suppose that person starts a business and uses his savings of $60,000 on which she was earning a 10% rate of interest and uses it to buy the raw materials for business. He receives $160,000 in revenue in his business and pays rent of $20,000 and $25,000 to laborers. Calculate the accounting profits. a. 55,000 b. 45,000 c. 81,000 d. 115,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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