Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. She pays $1,800 rent each month, $2,000 for monthly employee payroll, and $1,300 for supplies each month. She was planning on selling several of her own tables and chairs on Craigslist for $1,400, but instead she brought them to The Coffee Cat. Additionally, she quit working as an accountant where she was earning $48,000 per year to open up the shop. If the shop earns $180,000 in revenue this year, calculate annual: Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Hint: Be sure to calculate explicit costs as annual costs. a. Accounting profit. $-15000 b. Economic profit. $-86000 x
Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. She pays $1,800 rent each month, $2,000 for monthly employee payroll, and $1,300 for supplies each month. She was planning on selling several of her own tables and chairs on Craigslist for $1,400, but instead she brought them to The Coffee Cat. Additionally, she quit working as an accountant where she was earning $48,000 per year to open up the shop. If the shop earns $180,000 in revenue this year, calculate annual: Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Hint: Be sure to calculate explicit costs as annual costs. a. Accounting profit. $-15000 b. Economic profit. $-86000 x
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. She pays $1,800 rent each month, $2,000
for monthly employee payroll, and $1,300 for supplies each month. She was planning on selling several of her own tables and chairs
on Craigslist for $1,400, but instead she brought them to The Coffee Cat. Additionally, she quit working as an accountant where she
was earning $48,000 per year to open up the shop. If the shop earns $180,000 in revenue this year, calculate annual:
Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-)
in front of those numbers. Hint: Be sure to calculate explicit costs as annual costs.
a. Accounting profit.
$-15000
b. Economic profit.
$-86000 x
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