Jack decides to quit his job paying $28,000 a year and start his own business manufacturing and selling Extreme skateboards. Jack invests $40,000 of his own money from his savings account, which had been earning him $2,000 in interest. The lease on the space Jack is renting costs him $10,000 a year. Jack's utilities (water, electricity, etc.) cost him roughly $5,000 a year. The cost of buying the materials for the skateboards is $20,000 a year. To assist him in maintaining the store and production facility, Jack hires Sara, part-time, at a salary of $10,000 a year. Jack knows his labor, skills and knowledge (entrepreneurial ability) of the skateboard industry is worth $10,000. Revenue for Extreme skateboards was $85,000. Compute Jack's accounting profit and economic profit. Will Jack continue to operate his own extreme sports shop or will he quit and do something else? Explain

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Okay lets break this down stepbystep Revenues Revenue from sales of Extreme skateboards 85000 Expens... View the full answer