Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

You are considering opening a small flower store. You anticipate that you will earn $100,000 each year in revenue. It will cost you $30,000 each year to rent the space necessary to run your business. Additionally, you will need to spend $10,000 each year on flower seeds, utilities, and other expenses necessary to operate your flower shop. You have just graduated from college with a degree in economics and have received an offer to work for a firm with a yearly salary of $70,000.
What is your anticipated economic profit of opening the flower shop?
Based on this information, you ________ open the flower store.

Sagot :

anthougo

1. The anticipated economic profit for opening the flower shop is $130,000.

2. Based on the information, you should not open the flower store.

Data and Calculations:

Annual revenue = $100,000

Rent expense = $30,000

Cost of goods and others = $10,000

Accounting income = $60,000

Opportunity cost = $70,000

Economic loss = ($10,000) ($60,000 - $70,000)

Anticipated economic profit = $130,000 ($60,000 + $70,000)

Thus, the opening of the flower shop will produce an economic loss for the entrepreneur.

Learn more: https://brainly.com/question/15134203

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.