A bartender is considering opening his own bar. To do so, he would have to quit his
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A bartender is considering opening his own bar. To do so, he would have to quit his current job, which pays $40,000 a year, and take over a store building that he owns and currently rents to his brother for $12,000 a year. His expenses at the bar would be $100,000 for food & drinks and $24,000 for utilities & maintenance. He expects to generate $160,000 in revenue. If the bartender starts his bar, what will his economic profit be?
a. $ 24,000
b. $ - 4,000
c. $ - 16,000
d. $ 160,000
e. $ 36,000
Related Book For
Management Science The Art of Modeling with Spreadsheets
ISBN: 978-1118582695
4th edition
Authors: Stephen G. Powell, Kenneth R. Baker
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