The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $40,000 Annual lease on building = $25,000 Annual revenue from operations rations= $420,000 Payments to workers= $150,000 Utilities (electricity ,water, disposal al) 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 economic profit is?
The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $40,000 Annual lease on building = $25,000 Annual revenue from operations rations= $420,000 Payments to workers= $150,000 Utilities (electricity ,water, disposal al) 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 economic profit is?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 7.5IP
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The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $40,000
Annual lease on building = $25,000 Annual revenue from operations rations= $420,000 Payments to workers= $150,000
Utilities (electricity ,water, disposal al) 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 economic profit is?
Transcribed Image Text:The following is cost information for the Creamy Crisp Donut Company.
Entrepreneur's potential earnings as a salaried worker = $40,000
Annual lease on building = $25,000
Annual revenue from operations = $420,000
Payments to workers :
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
$150,000
%3D
Creamy Crisp's economic profit is
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