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

Entrepreneur\\\'s potential economic profit from the next best entrepreneurial activity = $80,000

Entrepreneur\\\'s forgone interest on personal funds used to finance the business = $6,000

Answer these questions directly:

a) Creamy Crisp\\\'s explicit costs are:

b) Creamy Crisp\\\'s implicit costs (total) are :

c) Creamy Crisp\\\'s total economic costs (explicit + implicit costs) are:

d) Creamy Crisp\\\'s accounting profit is:

e) Creamy Crisp\\\'s economic profit is:

f) If Creamy Crisp\\\'s revenue fell to $286,000, what is the new accounting profit and the new economic profits?

Answer rating: 100% (QA)

Sol a Creamy Crisps explicit costs ... View the full answer