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The following is cost information for the Creamy Crisp Donut Company.


Entrepreneur's potential earnings as a salaried worker = $40,000
Annual lease on building = $25,000
Annual revenue from operations = $420,000
Payments to workers = $150,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000

Creamy Crisp's total economic costs are:
A. $309,000.
B. $183,000.
C. $111,000.
D. $189,000.

Sagot :

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