You are working as a Manager at Brown Mountain

Fine Dining Restaurant. Your salary is $32.88 per hour and you work 44 hours per week. You have always wanted to be your own boss, but could never afford to start up or purchase your own company. Next week you will gain access to your $240000 trust fund which is currently invested at 5%. Last week you were presented with an opportunity to purchase Orange Comet Rentals in response to your inquiries. The email stated that the Rentals company is available for $29000. A decision from you is needed by the end of the week.

The annual estimates for the first few years including the first of operation supplied by the Orange Comet Rentals company are below:

SALES EXPENSES:

RENT

COSTS OF GOODS

OTHER SALARIES

TAXES/FEES

UTILITIES

451000

18000

112700

150000

56000

90000

X

A'

This question: 5 point(s) possible

Submit quiz

What are the Implict costs of owning the business?

What are the Explicit costs of owning the business?

What are the total Economic profits?

What are the total Accounting profits?

Should you take the opportunity?

O No, because Accounting Profits

O Yes, because Accounting Profits

O Yes, because Economic Profits > 0

O No, because Economic Profits

Transcribed Image Text:

You are working as a Manager at Brown Mountain Fine Dining Restaurant. Your salary is $32.88 per hour and you work 44 hours per week. You have always wanted to be your own boss, but could never afford to start up or purchase your own company. Next week you will gain access to your $240000 trust fund which is currently invested at 5%. Last week you were presented with an opportunity to purchase Orange Comet Rentals in response to your inquiries. The email stated that the Rentals company is available for $29000. A decision from you is needed by the end of the week. The annual estimates for the first few years including the first of operation supplied by the Orange Comet Rentals company are below: SALES 451000 What are the Implict costs of owning the business? What are the Explicit costs of owning the business? What are the total Economic profits? What are the total Accounting profits? Should you take the opportunity? O No, because Accounting Profits <0 Yes, because Accounting Profits <0 Yes, because Economic Profits > 0 O No, because Economic Profits < 0 EXPENSES: RENT 18000 COSTS OF GOODS 112700 O OTHER SALARIES TAXES/FEES 150000 56000 UTILITIES 90000 You are working as a Manager at Brown Mountain Fine Dining Restaurant. Your salary is $32.88 per hour and you work 44 hours per week. You have always wanted to be your own boss, but could never afford to start up or purchase your own company. Next week you will gain access to your $240000 trust fund which is currently invested at 5%. Last week you were presented with an opportunity to purchase Orange Comet Rentals in response to your inquiries. The email stated that the Rentals company is available for $29000. A decision from you is needed by the end of the week. The annual estimates for the first few years including the first of operation supplied by the Orange Comet Rentals company are below: SALES 451000 What are the Implict costs of owning the business? What are the Explicit costs of owning the business? What are the total Economic profits? What are the total Accounting profits? Should you take the opportunity? O No, because Accounting Profits <0 Yes, because Accounting Profits <0 Yes, because Economic Profits > 0 O No, because Economic Profits < 0 EXPENSES: RENT 18000 COSTS OF GOODS 112700 O OTHER SALARIES TAXES/FEES 150000 56000 UTILITIES 90000