The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker= $48,000Annual lease on building = $20,000Annual revenue from operations $280,000Payments to workers $118,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,00020eBookCreamy Crisp's economic profit isMultiple Choice00008

Economic profit = revenue - total cost Total cost = implicit cost + explicit cost Implicit cost is…

Answered: The following is cost information for…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 3E

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