Author Question: Maryann and Don want to open their own deli. To do so, Maryann must give up her job, at which she ... (Read 96 times)

melly21297 · **on:** Jun 30, 2018

Maryann and Don want to open their own deli. To do so, Maryann must give up her job, at which she earns 20,000 per year, and Don must give up his part-time job, at which he earns 10,000 per year. They must liquidate their money market fund, which earns 1,000 interest annually. The rent on the building is 10,000 per year, and expenses for such necessities as utilities, corned beef, and pickles are 35,000 annually. What minimum amount of revenue per year would make it worthwhile, financially, for Maryann and Don to operate the deli?
a. 10,000
b. 35,000
c. 45,000
d. 31,000
e. 76,000

Question 2

Which of the following would be shown on IBM's accounting statement?
a. revenue, implicit costs, explicit costs, and economic profit
b. revenue, implicit costs, explicit costs, and accounting profit
c. revenue, explicit costs, and economic profit
d. revenue, explicit costs, and accounting profit
e. revenue, implicit costs, and accounting profit