Jack quit his $30.000 a year job as a bartender to open up his own bartending...
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Jack quit his $30.000 a year job as a bartender to open up his own bartending school. He used $40.000 of his savings, which was earning 1.25 per cent interest per year, to start his school. At the end of the first year of operating the school, tuition received was $114,500. Expenses for the year were as follows: Classroom Rent S12.000 Liquor for Classes $2.500 Notes and Paper for Students $1,600 Staff Salaries $48,000 Bar Equipment Rental $15.000 Other Expenses S3,500 Calculate Jack's economic profit (or loss) t his new business. Jack quit his $30.000 a year job as a bartender to open up his own bartending school. He used $40.000 of his savings, which was earning 1.25 per cent interest per year, to start his school. At the end of the first year of operating the school, tuition received was $114,500. Expenses for the year were as follows: Classroom Rent S12.000 Liquor for Classes $2.500 Notes and Paper for Students $1,600 Staff Salaries $48,000 Bar Equipment Rental $15.000 Other Expenses S3,500 Calculate Jack's economic profit (or loss) t his new business.
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Economic profit is the difference between the total revenue received by a business and ... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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