3. An individual who was working full time left his job and started a bakery on his own monthly he earned a revenue of 65,000 out of which he was paying 25,000 as salary, electricity 10,000 and raw material cost 12,000,-.He also had invested 200,000 in shares and he gets monthly dividend of 35% from the investment. He is staying in his own premises. Before coming into the business he was getting a salary of 75,000 monthly and he was earning part time he got 300$ per week. He rented out his premises and got a rent income 30,000$ per monthWhat is the opportunity cost if he starts his own business.(annual basis)

Opportunity costs refer to the costs which are considered while selecting between alternative…

Answered: An individual who was working full time…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

3. An individual who was working full time left his job and started a bakery on his own monthly he earned a revenue of 65,000 out of which he was paying 25,000 as salary, electricity 10,000 and raw material cost 12,000,-.He also had invested 200,000 in shares and he gets monthly dividend of 35% from the investment. He is staying in his own premises. Before coming into the business he was getting a salary of 75,000 monthly and he was earning part time he got 300$ per week. He rented out his premises and got a rent income 30,000$ per month

What is the opportunity cost if he starts his own business.(annual basis)

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions